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F. Naz
F. Naz, Chartered Accountant
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At a recent company meeting, an employee remarks: “We were

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At a recent company meeting, an employee remarks: “We were working so hard to get the income for our bonus this year. Then they got that entire raw material inventory in—and even paid for it. We don’t need it yet. Why didn’t they wait until January?” Will the raw material inventory affect this year’s income? Does it matter whether it was paid for this year or in January? Explain. Give examples to support your answers.
Submitted: 5 years ago.
Category: Homework
Expert:  F. Naz replied 5 years ago.

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