Under the lower-of-cost-or-market rule

Assignment Help Financial Accounting
Reference no: EM131219584

Under the lower-of-cost-or-market rule, the cost of inventory is reduced if the market value falls below the initial cost of the inventory. Why not increase the cost of inventory if the market value is higher than the initial cost of the inventory?

Reference no: EM131219584

Questions Cloud

Prepare statement of partnership equity for the year : The partnership of Angel Investor Associates began operations on January 1, 2014, with contributions from two partners as follows: The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income...
How many trips must hammerhead sell to break even : Hammerhead Charters runs fishing trips out of the local port. Hammerhead charges $50 per trip for a half-day trip. Variable costs for Hammerhead total $20 per trip and the fixed costs are $6,000 per month. How many trips must Hammerhead sell to break..
Compute the ending inventory by the retail inventory method : Retail Inventory Method Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during 2013: Compute the ending inventory by the retail inventory method for the following cost flow..
Allowed management to retain some of the firms earnings : Over the years, Masterson Corporation's stockholders have provided $34,000,000 of capital when they purchased new issues of stock and allowed management to retain some of the firm's earnings. How much value has Masterson's management added to stockho..
Under the lower-of-cost-or-market rule : Under the lower-of-cost-or-market rule, the cost of inventory is reduced if the market value falls below the initial cost of the inventory. Why not increase the cost of inventory if the market value is higher than the initial cost of the inventory?
Concerning interim quarterly financial statements : Concerning interim quarterly financial statements, management of public companies:
How are gambling winnings treated for tax purposes : How are gambling winnings treated for tax purposes? What about gambling losses? What is the interplay between these items? Does it make a difference whether the gambling is legal or illegal? Where are these items reported on individual tax forms? In ..
Components divisions income from operations increase : Materials used by the Truck Division of Armstrong Motors are currently purchased from outside suppliers at a cost of $245 per unit. However, the same materials are available from the Components Division. How much would the Truck Division's income fro..
Compute the company degree of operating leverage : Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Compute the company’s degree of operating leverage. Construct a new contribution format income statement for the company ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Add any additional ledger accounts required to complete

You have a new client who has incomplete financial records. You find that he has a motor vehicle for use in the business purchased in an earlier year.

  Computation of contribution margin which is of variable

computation of contribution margin which is of variable costing method income statement.miyamoto jewelers is

  Morgans taxable income and morgans tax liability

Morgan (age 45) is single and provides more than 50% of the support of Rosalyn (a family friend, age 36), Flo (a niece, age 18), and Jerold (a nephew, age 18). Morgan's taxable income is? Morgan's Tax liability?

  What is the current ratio

A company has current assets of $80,000 (of which $30,000 is inventory) and current liabilities of $20,000. What is the current ratio?

  Explain deficiencies in the statement prepared by company

Identify and explain the deficiencies in the statement prepared by the company's accountant. Include in your answer items that require additional disclosure, either on the face of the statement or in a note.

  Vanna co. produces and sells two products

Vanna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels.

  Purpose a petty cash payments report for february

Purpose a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.

  What is marys realized gain

What is Marys recognized gain, what is Marys realized gain and what is Marys basis for her stock

  Find the total cost of serving

The activity-based costing system and find the total cost of serving each of the following parties of diners? a. A party of four diners who three drinks in total.

  Compute free cash flow and prepare a statement of cash flows

Prepare a statement of cash flows for 2014 using the indirect method and compute free cash flow

  Alice and bob choose their actions simultaneously

Alice wants to support her son Bob if he looks for work but not otherwise. Bob wants to try to find a job only if Alice does not support his life of indolence.

  How to retrieve financial statements

How to Retrieve Financial Statements. The financial statements of all U.S. publicly traded companies are a matter of public record.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd