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saveliy_v [14]
3 years ago
11

Explain what lower of cost or market means in regards to reporting merchandise inventory on the balance sheet.

Business
1 answer:
Degger [83]3 years ago
4 0

Answer and Explanation:

Inventory is an asset and is posted on the asset side of the balance sheet. As per accounting standards regarding inventory valuation, it can be either valued at historical cost or at market price, whichever is lower.

Historical cost is the cost at which asset was acquired. Market price is the price which would be received if the asset is replaced as on the date on which balance sheet is prepared. Inventory is valued at lower of the above mentioned costs.

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A sudden increase in inflation, ceteris paribus, a. Raises the real income of lenders relative to borrowers. b. Raises the CPI a
Nikitich [7]

Answer: Raises the CPI and reduces real income.

Explanation:

Inflation is a sustained rise in the general price level of the goods and services in an economy during a particular period. It is usually expressed as a percentage. Inflation leads to a reduction in the purchasing power of a country's currency.

Real income reduces because a rise in the price level with nominal income constant reduces the purchasing power of money. People holding real assets are better off than people who are holding cash.

6 0
3 years ago
<11{6[1(07)71]}> The higher the price of an antique, the greater people’s expectation that the object is rare. That, in tu
ollegr [7]

Answer:

a. should be discouraged because it lessens a quality that makes that antique desirable

Explanation:

In pricing theory, the price for a good or service should increase as its scarcity increases. Now selling the antique at a bargain price will reduce the price of it and thereby making it less scarce and rare.

8 0
3 years ago
IDPSs can help the organization protect its assets when its networks and systems are exposed to ____________________ vulnerabili
zhannawk [14.2K]

Answer:

The correct answer is Known vulnerabilities.

Explanation:

An intrusion prevention system (or by its acronym in English IPS) is a software that exercises access control in a computer network to protect computer systems from attacks and abuses. Intrusion prevention technology is considered by some to be an extension of intrusion detection systems (IDS), but in reality it is another type of access control, closer to firewall technologies.

5 0
3 years ago
Airborne Airlines Inc. has a $1,000 par value bond outstanding with 10 years to maturity. The bond carries an annual interest pa
yanalaym [24]

Answer:Yield to maturity is 9.59%;  After tax cost of debt =7.672%

Explanation:

 A)   Yield to maturity ={ C + (FV-PV)/t} /  {(FV +PV)/2}

Where C – Interest payment    = $90

FV – Face value of the security

= $1000

PV – Present value/curent market value = $960

t – years it takes the security to reach maturity= 10 years

imputing the values and calculating,

yield to maturity ={ C + (FV-PV)/t} /  {(FV +PV)/2}

= $90 + (1000-960)/10} / 1000 + 960 /2

$90 + 4= $94 /980= 0.0959

therefore Yield to maturity is 9.59%

B)   After tax cost of debt =    Yield To Maturity  x (1 - tax rate)

=9.59% x (1-20%)= 9.59% x (1-0.2 )= 9.59% x 0.8 =

9.59 % x 80%=7.672%

4 0
3 years ago
Your neighbors have offered to pay you to look after their dog while they are on vacation. It will take you one hour per day to
love history [14]

Answer:

C the value you place on one hour of leisure

Explanation:

Here are the options to this question:

OA $15, because overtime wages are generally 1.5 times your regular wage when you work more than eight hours a day OB. $10, because that is your opportunity cost of one hour of work OC the value you place on one hour of leisure OD. zero, because your regular job is not available for more than eight hours per day

Caring for the dog won't interfere with my job as I can care for the dog either before or after work.

What I would be sacrificing to care for the dog would be the time I would have spent resting or doing leisure activities. So the least amount I should charge is the value i place on one hour of leisure.

I hope my answer helps you

8 0
3 years ago
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