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Identify and explain the two underlying assumptions of the conceptual framework.
Beginning Inventory
The value of all the goods or materials held by a company at the start of an accounting period.
Net Sales
The total revenue generated from sales of goods or services, after deducting returns, allowances for damaged or missing goods, and discounts.
Inventory Value
The total cost or market value of all the goods and products held by a company intended for sale.
Cost
The amount of money or resources expended in order to acquire an asset or carry out a specific activity.
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