Accounting 101 Question?

💰 財經台其他 - 商業及金融

itguru5354

2011-10-26 6:22 am

If inventory decreases, does cash go up??

更新1:

I got it now. thanks

更新2:

I got it now. thanks

回答 (1)

[匿名]

2011-10-26 1:12 pm

✔ 最佳答案

Not directly, but conceptually, yes. If inventory decreases, it would mean that some inventory had been sold, which means that sales money would have been collected, so cash goes up. But remember that inventory decreases at cost value, while sales are at selling price.

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