O'Reilly logo

Business Analysis with Microsoft® Excel, Second Edition by Conrad Carlberg

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Getting a Current Asset Balance

Chapter 3 goes into considerable detail on the topic of valuing inventories. However, because a company's inventory is also a current asset, some of the mechanics of moving inventory asset amounts among various accounts as the balance sheet is being prepared are discussed here.

At the end of an accounting period, when you are preparing an income statement and a balance sheet, it is usual to bring the balances of the various revenue and expense accounts to zero. The reason for this is that the next time you prepare these statements, you want them to reflect the activity that takes place during the next period.

A starting value of zero in the revenue and expense accounts allows you to accurately determine the profit ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required