An organisation sells a significant proportion of its inventory two weeks after the reporting date. The inventory

Question:

An organisation sells a significant proportion of its inventory two weeks after the reporting date. The inventory had been on hand for four months. Would this constitute an ‘adjusting event’? Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 9781743767382

9th Edition

Authors: Craig Deegan

See More Books

Question Posted: Sep 15, 2023 05:09 PM

See More Questions

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Texas A&M University (TAMU), founded in 1876, is deeply rooted in tradition, and its students are well known for their intense Aggie spirit. Located in College Station, Texas, the university...
Determine the equations for the voltage and instantaneous Power in the network in Figure P 9.2 4 2225 A Figure P 92
Suppose that the government wants to increase Social Security taxes by $1 per hour of work and is undecided between increasing the tax on workers and increasing the tax on employers. According to the...
Identify the key elements of organizational structure.
The table shows the number of larceny-thefts (per 100,000 population) and the number of motor vehicle thefts (per 100,000 population) in six randomly selected large U.S. cities. At a = 0.10, can you...
A 12.0-kg object hangs in equilibrium from a string with a total length of L = 5.00 m and a linear mass density of μ = 0.001 00 kg/m. The string is wrapped around two light, frictionless pulleys...
Pharoah Company sells one product. Presented below is information for January for Pharoah Company. Nov. 1 Inventory 270 units at $ 10 each 5 Purchase 170 units at $ 11 each 10 Sale 370 units at $ 20...
Construct a rough retirement budget. Adjust the average social security check of $1,422 at 2% inflation until your retirement date. Do the same with your expenses. Determine the difference between...
The managers of an organisation are provided with an annual bonus which is 1 per cent of profits. The profit of the organisation is not determined until 2 months after the reporting date. Would the...
An organisation has five factories. One of the factories burns down two weeks after the end of the reporting period. Would this constitute an adjusting event or a non-adjusting event? Why?
Explain how hyperinflation might lead to a severe decline in total output.
Pink Jeep Tours offers off-road tours to individuals and groups visiting the Southwestern U.S. hotspots of Sedona, Arizona, and Las Vegas, Nevada. Take a tour of the companys Web site at...
The following are unrelated accounting practices: 1. Pine Company purchased a new $\$ 30$ snow shovel that is expected to last six years. The shovel is used to clear the firm's front steps during...
Identify whether the following statements are true or false. 1. One argument for IFRS is that there is less globalization in the world. 2. IFRS is accepted as GAAP in every country of the world. 3....
You will need isometric dot paper for this question. Part of a pattern using four rhombuses is drawn on isometric dot paper below. By drawing two more rhombuses, complete the pattern so that it has a...
Fred Flores operates a golf driving range. For each of the following financial items related to his business, indicate the financial statement (or statements) in which the item would be reported:...
Robert's linkage is named after Richard Robert (1789-1864) and can be used to draw a close approximation to a straight line by locating a pen at Point F. The distance AB is the same as BF, DF and DE....
Briefly discuss the implications of the financial statement presentation project for the reporting of stockholders equity.
The net income reported on the income statement of Styx Co. was $3,200,000. There were 250,000 shares of $5 par common stock and 250,000 shares of $1 preferred stock outstanding throughout the...
Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or extraordinary (E). a. Gain on sale of land...
Eris, Inc., reports the following for 2012: Income from continuing operations before income tax .........$800,000 Extraordinary property loss from hurricane .............. $100,000* Loss from...
Los datos de la columna C tienen caracteres no imprimibles antes y despus de los datos contenidos en cada celda. En la celda G2, ingrese una frmula para eliminar cualquier carcter no imprimible de la...
Explain impacts of changing FIFO method to weighted average method in inventory cost valuations? Explain impacts of changing Weighted average method to FIFO method in inventory cost valuations?...
A perpetuity makes payments starting five years from today. The first payment is 1000 and each payment thereafter increases by k (in %) (which is less than the effective annual interest rate) per...

An organisation sells a significant proportion of its inventory two weeks after the reporting date. The inventory

Question:

Step by Step Answer:

Because the inventory had been on hand for 4 months ...View the full answer

Financial Accounting

Students also viewed these Business questions