Accounting for IGCSE & O level - Final Statements (Section 10 - No. 20)
What is the primary reason to carry out valuation of inventory?
To determine the selling price
To calculate the cost of goods sold
To calculate the inventory quantity
To determine the balance sheet and income statement figures
Explanation
Inventory valuation is crucial for accurately reflecting inventory value on the balance sheet and determining the cost of goods sold for the income statement.
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