Beginning Inventory - BI


DEFINITION of 'Beginning Inventory - BI'

The book value of goods, inputs or materials available for use or sale at the beginning of an inventory accounting period. A firm's beginning inventory represents all the "widgets" the company can contribute towards generating revenue for a forward-looking period. Companies almost universally keep close tabs on their inventory numbers at the beginning and end of reporting periods, in order to measure their efficiency and fiscal performance.

BREAKING DOWN 'Beginning Inventory - BI'

Beginning inventory is similar to ending inventory, except that it is adjusted for any accounting discrepancies. BI is an important figure for companies, because they use it to gauge new ordering requirements and to forecast future sales. Company managers can sometimes be evaluated based on their levels of beginning inventory and inventory turnover over a given period of time.

  1. Average Age Of Inventory

    The average number of days it takes for a firm to sell to consumers ...
  2. Accounting

    The systematic and comprehensive recording of financial transactions ...
  3. Inventory

    The raw materials, work-in-process goods and completely finished ...
  4. Forecasting

    The use of historic data to determine the direction of future ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Ending Inventory

    The value of goods available for sale at the end of the accounting ...
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    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  2. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  3. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
  4. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  5. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
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