Inventory valuation impacts both the balance sheet (as it determines the value of current assets) and the income statement (as it affects the cost of goods sold and net income).

Return on equity (ROE) is calculated by dividing net income by shareholder's equity, indicating how effectively management is using a company’s assets to create profits.

Accounting ratios are used to analyze financial performance and assess the financial health of a business.

Accounting standards are designed to ensure consistency, comparability, and transparency in financial reporting across different entities.

Financial accounting primarily focuses on providing information to external users for reporting purposes.

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.