Many businesses buy and sell inventory (goods for resale). Given the perpetual inventory method of recording inventory. With reference to one particular product, the process of buying and selling inventory may proceed as follows:

• Goods are ordered from a supplier.
• The supplier delivers the goods.
• An invoice for the cost of the goods is received.
• The goods are stored and /or displayed.
• The supplier's invoice is paid.
• A customer buys all (or some) of the goods on credit and takes delivery.
• The customer pays for the goods sold.

Required

With reference to the goods above; at what stage in the process is;

i.  an asset first recognised, and then;

ii. an expense first recognised?  

Your answer should briefly discuss each of the relevant criteria from the Conceptual Framework.

Answer rating: 100% (QA)

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