METHODS FOR VALUING STOCKS

Zdravkoski, Igor and Markusoski, Ljupce and Vasileski, Zoran and Andonovski, Miroslav (2022) METHODS FOR VALUING STOCKS. In: EBSiDE 2022, October, 2022, Prilep, Republic of North Macedonia.

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Abstract

Inventories are current assets, i.e. working capital that directly affect the increase or decrease of the working capital of the enterprise. They are an integral part of everyday work. Data on them are very important indicators in the functioning of the production process. One of the most important issues for achieving economy and rationality in the operation of business entities is determining the optimal amount of storage.
Due to the different types of inventory, as well as determining which is the smallest and which is the largest amount of inventory that a company should have, the management of each individual business entity is faced with a difficult decision.
Here, the accounting records are of particular importance for the perception of operating costs of companies. The value of inventories includes the cost of procurement, conversion costs and other costs incurred in order to bring inventories to their current location and current condition. All products that are not sold are presented by the companies as inventories in the balance sheet.
In the future, when the same products are sold, inventory costs are converted into expenses (cost of sales) and are shown in the income statement. Furthermore, these expenses are deducted from net sales. The additional expenses are deducted and the net profit is obtained.
All this, due to the possibility of assessing the profitability of business entities which is perceived through the gross profit presented in the financial statements.
Keywords: current assets, optimal quantity, production process, costs, gross profit.

Item Type:	Conference or Workshop Item (Speech)
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions:	Faculty of Economics
Depositing User:	Mr Dimitar Risteski
Date Deposited:	09 Mar 2023 09:46
Last Modified:	09 Mar 2023 09:46
URI:	https://eprints.uklo.edu.mk/id/eprint/7777

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