What factors warrant special attention in appraising a firm’s inventory, equipment and accounts receivable?

Business

1 answer:

melisa1 [442]3 years ago

4 0

Answer:

First, factors warrant special attention in appraising a company's <em>inventory </em>is that it is unnecessary for you to accept the value that is already set by the seller. It is a major point to have a deal, a negotiation about the value of it.

Secondly, about the firm's equipment, it should be evaluate based on its value, current condition with any damage or depreciation, the age of using as well as whether it is leased or purchased asset.

Last, about account receivable, it is essential when appraising to look in the longer period of time, breaking the balance sheet of the account into 30, 60 or 90+ days. It can be concluded that the longer the accounts are outstanding, the less valuable that its assets are.

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