Question: Why is it important to state the assets and liabilities at their correct accrual basis amounts at the start of the accounting cycle? If inventory

Why is it important to state the assets and liabilities at their correct accrual basis amounts at the start of the accounting cycle?

If inventory levels are rising but the sales are not, what might this indicate and why might this be a concern?

What might rising trade debtors indicate and what action might you take?

How could comparisons between your organisation and your competitors be useful?

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