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Ch 15: Asset & Inventory Management

About This Chapter

If you need to brush up on your knowledge of business assets and inventory methods for academic or professional purposes, then this chapter is for you. Build workplace skills or expand your studies of business topics for a school course.

Asset & Inventory Management - Chapter Summary

Businesses must be able to manage assets and maintain inventory to ensure financial success. This chapter focuses on such topics as asset categorization, asset calculation formulas, inventory systems and inventory valuation. Check what you have retained from each lesson with self-assessment quizzes and contact instructors with any lesson-specific questions. Upon completion of this chapter, you should have the ability to do the following:

  • Define and categorize business assets
  • Explain total, current and non-current assets
  • Calculate return on assets and inventory value
  • Apply the capital asset pricing model
  • Differentiate between perpetual and periodic inventory systems
  • Describe various inventory valuation methods

8 Lessons in Chapter 15: Asset & Inventory Management
Business Assets: Definition & Examples

1. Business Assets: Definition & Examples

Learn what business assets are, and find out some of the most common assets that companies have on their balance sheets in this lesson. Also, learn about some of the different ways that these assets are categorized.

Total Assets: Definition & Explanation

2. Total Assets: Definition & Explanation

Assets come in many different categories and classifications. In this lesson, we will take a look at total assets. You will learn not only what total assets are but also where a company must report them.

What Are Current Assets? - Definition, Examples & Calculation

3. What Are Current Assets? - Definition, Examples & Calculation

In this lesson, you will learn the meaning of the term current asset. You will also learn what items fall into the category of current assets and how they fit on a balance sheet.

Non-Current Assets: Definition & Examples

4. Non-Current Assets: Definition & Examples

The accounting industry is centered on a basic equation: Assets = Liabilities + Owner's Equity. To fully understand this, you must first understand each component of the equation. In this lesson, we will discuss one category that falls under the classification of an asset: non-current assets.

Computing and Interpreting Return on Assets

5. Computing and Interpreting Return on Assets

There are a number of ratios that can be calculated by information found on the financial statements. In this lesson, you will learn about return on assets.

Capital Asset Pricing Model (CAPM): Definition, Formula, Advantages & Example

6. Capital Asset Pricing Model (CAPM): Definition, Formula, Advantages & Example

Learn about the Capital Asset Pricing Model (CAPM), one of the foundational models in finance. We'll look at the underlying assumptions, how the model is calculated, and what it can do for you.

The Lower of Cost or Market of Inventory: Definition & Method

7. The Lower of Cost or Market of Inventory: Definition & Method

No matter what kind of inventory a company has, that inventory has value. In this lesson, we'll talk about valuing inventory using the lower of cost or market rule.

Net Realizable Value of Inventory: Definition & Method

8. Net Realizable Value of Inventory: Definition & Method

Calculating inventory value is essential for correct reporting in accounting records. In this lesson, we are going to discuss what net realizable value is and why it plays an important role in inventory valuation.

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