What is an inventory and what is it used for?

Inventory - what is meant by it

• It sounds quite simple: an inventory is nothing more than the determination of assets, but also debts of a commercial enterprise. It is important that a complete inventory is always carried out.
• There are two variants. The first is physical inventory. Everything that can be counted - from stocks to production machines to vehicles - is numerically determined by the aforementioned counting, but also by measuring, weighing and estimating.
• The book inventory, on the other hand, deals with values ​​that cannot be determined using these methods. Whether liabilities, debts, real estate, bank balances or claims from your own customers - all this and more is determined and recorded in the book inventory.

The benefits easily explained - what it is used for in practice

• Like it in the accounting So beautifully means: Through the inventory you determine the existing inventory - this is an exact directory in which debts and assets are clearly listed.
• And what is it all for? This is the only way to determine exactly whether the balance sheet corresponds to the facts.


Explain the difference between inventory and inventory for vocational students

Accounting is a compulsory program for many vocational school students and enjoys ...

• However, determining the inventory is not something you can decide for or against. There are precise guidelines for this, which can be found in the Commercial Code. An inventory is generally required when founding or taking over a company - as well as when it is dissolved or sold.
• It is also carried out at the end of the financial year. In everyday life you can see this in shops, for example. Who doesn't know the sign? "Closed for inventory." Here, too, you have to count regularly - among other things, it also serves to compare the theoretical inventory with practice. Among other things, it can also be used to determine how great the damage was caused by theft in the financial year.