Inventory Appraisal is a process used by businesses to assess the value of their inventory holdings. The inventory appraisal process includes both physical and financial analysis, and can be conducted with the help of qualified appraisers or through self-evaluation. The purpose of inventory appraisal is to determine the amount that should be recorded in a company’s books as an asset. This allows companies to accurately calculate their capital assets on their balance sheet, as well as giving them insight into how much money is tied up in their inventory holdings. With this information, companies can make informed decisions about the purchase and disposal of stock, enabling them to maximize their return on investments.