Explain the following terms with example;
(a) Inventory 
(b) Current Liabilities
(c) Reserves and Surplus 
(d) Contingent liabilities

(a) Inventory:
Inventory refers to the stock of goods or materials that a company holds for the purpose of selling, manufacturing, or distributing in the ordinary course of business. It represents one of the most significant current assets on a company's balance sheet. Inventory can take various forms, depending on the nature of the business:

1. Raw Materials: These are the basic materials or components used in the manufacturing process. For example, a furniture manufacturer would have an inventory of wood, metal, fabrics, and other raw materials needed to produce furniture.

2. Work-in-Process (WIP): This represents partially completed goods that are still undergoing the manufacturing process. For instance, a car manufacturer would have an inventory of car bodies, engines, and other components that are being assembled into finished vehicles.

3. Finished Goods: These are the completed products ready for sale to customers. A clothing retailer would have an inventory of various apparel items, such as shirts, pants, and dresses, that are available for purchase by consumers.

Proper inventory management is crucial for businesses to ensure they have sufficient stock to meet customer demand while avoiding excessive holding costs and obsolescence. Companies use various inventory valuation methods, such as First-In-First-Out (FIFO), Last-In-First-Out (LIFO), or Weighted Average Cost, to ___ ______ ______ ________ _______.
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