Soccerisboss9505 Soccerisboss9505
  • 03-10-2017
  • Business
contestada

How should sbs classify the spare parts that it expects to use within one year — as inventory or as a prepaid/other current asset?

Respuesta :

andriansp andriansp
  • 30-10-2017
Sbs could do it by starting to find out each functions of the spare parts.
If the spare parts is resided to be a part of the product, it should be classified as inventory.
IF the spare parts is resided for people who want to redeem warranty, it shold be classified as prepaid.
If the spare parts is part of research and development it should be classified as other assets.
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