How many of the following regarding the lower of cost or market rule for inventory are true?

Question:

The lower of cost or market rule is an example of the historical cost principle.

When the replacement cost of inventory drops below the cost shown in the financial records, net income is reduced.

» When the replacement cost of inventory drops below the cost shown in the financial records, total assets are reduced.

a. none

c. two

b. one

d. three

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: 9780070891739

1st Canadian Edition

Authors: Robert Libby

See More Books

Question Posted: Jul 03, 2024 02:01 AM

See More Questions

Which of the following regarding the lower of cost or market rule for inventory are true? (i) The lower of cost or market rule is an example of the historical cost principle. (ii) When the market...
The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance $3,600 Supplies...
I have a toturial credit , I need some one tell teach me from question 85 to 140 5.The changes in the firm's future cash flows that are a direct consequence of accepting a project are called: A)...
According to Kurt Lewin, why is it so difficult to motivate employees to alter their patterns of behavior?
Why do you think that thieves target heavy construction machinery?
The web site IncomeTaxList.com lists the average annual income for California as $44,400. What is the role of the term average in statistics? Should another term be used in place of average?
Project success is defined as adherence to budget, schedule, functionality (performance), and client satisfaction. Under these criteria, cite evidence that suggests the Sochi Olympics project was a...
Kirsten Neal is interested in purchasing a new house given that mortgage rates are at a historical low. Her bank has specific rules regarding an applicants ability to meet the contractual payments...
On December 31,201, the Income Statement columns of the worksheet for The Sax Shop contained the following information. Assume further that the owner of the firm is Mark Fronke and that the Mark...
Which inventory method provides a better matching of current costs with sales revenue on the income statement and outdated values for inventory on the balance sheet? a. FIFO c. LIFO b. weighted...
A New York bridal dress designer who makes high-end custom wedding dresses most likely uses which inventory costing method? a. FIFO c. Weighted average b. LIFO d? Specific identification
Define disintermediation and channel disruption and describe how they affect the nature and design of marketing channels.
Systems thinking is all about solving problemsin organizations, world situations, and even our personal lives. But it is not just a procedure; it is a different way of approaching problems. Our...
How would I display the following 3 principles in an entertaining infographic? Be very specific . Principle 1: Employee Engagement and Motivation Drawing from the Human Relations Movement theory and...
Shown below is a cross section of tubular member which is subjected to a torque T= 5.5 kN-m. It has a length L-3.0-m and the material shear modulus G=27 GPa. Dimensions: b=150 mm, h= 100 mm and t= 8...
The hip roof shown in the below Figure 2 is constructed of 2x10 rafters spaced 16 inches on center. The hip rafters are 1 -inch-wide by 12-inch-high GLBs. The roof has a slope of 4:12. Prepare a list...
2. Estimate the populations of Fargo, ND and Bismarck, ND in years of 2040 and 2050. Select a single value of population that you would use for design purposes in each year. You need to specify and...
Joseph Knapp, a newly hired accountant wanting to impress his boss, stayed late one night to analyze the office supplies expense. He determined the cost by month for the previous 12 months of each of...
Before the 1973 oil embargo and subsequent increases in the price of crude oil, gasoline usage in the United States had grown at a seasonally adjusted rate of 0.57 percent per month, with a standard...
Strawberry Inc. has historically been an all-equity firm. The analyst expects EBIT to be $1.5B in perpetuity starting one year from now. The cost of equity for the company is 11.5% and the tax rate...
Guzman company received a 60- day, 5 % note for 54,000 dated July 12 from a customer on account. Determine the due date on note. Determine the maturity value of the note and journalize the entry of...
Jeannie is an adjunct faculty at a local college, where she earned $680.00 during the most recent semimonthly pay period. Her prior year-to-date pay is $18,540. She is single and has one withholding...

How many of the following regarding the lower of cost or market rule for inventory are true?

Question:

Step by Step Answer:

Financial Accounting

Students also viewed these Business questions