BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Inventory loans fall under the category also called “inventory financing.” They are any type of funding borrowed by a business to buy products they plan to sell in the future. The products are the inventory that becomes the loan’s collateral. Because the funds are secured, there is less risk to the lenders.

Detailed explanation-2: -The primary basis of accounting for inventories is cost, which is defined as the price paid or consideration given to acquire an asset. cost–> the sum of the expenditures and charges directly or indirectly incurred to bring an article to its existing condition and location.

Detailed explanation-3: -Assets To Include On Your Mortgage Application. What are assets, anyway? Assets are items you own that have a monetary value. They are usually grouped into three categories: cash, cash equivalents and property.

Detailed explanation-4: -In accounting terms, inventory is considered an asset. On the balance sheet, it is recorded as a current asset because businesses typically use, sell or replenish it in less than 12 months.