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September 5, 2025Revista Gestão e ConhecimentoOpen Access

Accounting Treatment of Inventory and Its Impact on Commercial Enterprises

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Authors

RCRudy Ivonne Ortega CabreraLALugarda María Recalde AguilarJMJaritza Xiomara Ortega Méndez

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Overview

Analysis reveals accounting treatment of inventory affects profitability and financial statements in commercial companies.

Key Points

  • Inadequate management of inventory can distort financial results, affecting decision-making.
  • Proper inventory accounting treatment is vital for accurate financial statements and reflects economic situation.
  • Various valuation methods, including FIFO, impact the cost of sales and overall profitability.
  • Analysis conducted through quantitative and qualitative methods on commercial companies in Quevedo.

Cite This Study

Cabrera et al. (2025) studied this question.

synapsesocial.com/papers/68bb3d682b87ece8dc956926https://doi.org/10.55908/rgcv19n2-008
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