NAC706.666. Inventory requirements.

     1. Physical inventories must be taken on the last day of each calendar year, or in lieu thereof, during the last week of the calendar year, of all materials and supplies which affect the operational, repair or maintenance activities of the company, such as fuel, oil, tires, batteries, radio tubes, shop parts and small tools. An adjustment to the proper expense account must be made for the difference between the inventories taken at the end of the calendar year and the inventories recorded for the beginning of the calendar year. If any bills have not been received or recorded for items considered in the year-end inventory, proper accrual entries must be made at a realistic estimated cost value. The adjustments must reflect proper expenses for the ending of the current year.

     2. Inventories of all materials and supplies must be segregated in accordance with the functional divisions so that expenses may be allocated properly.

     [Taxicab Auth., Uniform System of Accounts Reg. Gen. Instructions § 6, eff. 12-24-70; A 11-16-79]