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ololo11 [35]
3 years ago
14

In October of year one, a firm committed to a purchase of inventory at a total cost of $26,000. The contract is irrevocable and

specifies a delivery date in March of year two. At the end of year one, the market value of the inventory under contract is worth $23,000 at current cost. Choose the correct reporting for the year one financial statements:_______.
Business
1 answer:
nikklg [1K]3 years ago
6 0

Answer:

According to IAS 36 Impairment of assets says that the asset must be recorded at the lower of:

  • Cost $26,000
  • Net realizable Value $23,000

The lower value is $23,000, which must write off value of inventory with an amount of $3000. So the journal entry would be:

Dr Impairment Losses $3000

Cr        Advances paid for inventory     $3000

This entry is the fair presentation of the actual value of the advances paid.

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Suppose that Cambodia becomes the next popular tourist destination. You notice that hotels, restaurants, and other services cost
Leokris [45]

Answer:

c) greater than 1.

Explanation:

Cambodia is a southeast country in Asia. It is a beautiful country. It is very famous for the largest Hindu temple in the world, the Angkor Wat.  

The real exchange rate or RER in finance is defined as the currency of one country will be exchange for the currency of another country. It is the value of the currency of one country in comparison to the other country's currency.

In the context, the real exchange rate of Cambodian riel will be greater than 1 as the value Cambodian riel is much lower than U.S. dollar.

8 0
3 years ago
Which of the following statements is FALSE?A)A rise in the price level lowers real wealth and results in a lower level of consum
Lerok [7]

Answer:

Explanation:

Which of the following is a reason why decreases in the price level result in a rise in aggregate expenditure?

As the price level rises, government spending falls, which lowers aggregate expenditures. ... Price level increases raise real wealth which causes consumption spending and aggregate expenditures to decline. Price level increases cause firms and consumers to hold more money, which raises the interest rate.

4 0
3 years ago
Heather is an HR specialist at McCoy Manufacturing, where she is responsible for making sure HR policies and transactions delive
il63 [147K]

Answer: An operational executor

Explanation: The skills of an operational executor tend to lie within the range of human resource activities mostly characterized as transactional. They execute the operational aspects of managing people and organizations. That is, they are responsible for making sure human resource policies and transactions deliver results on a company wide basis by acquiring, developing, motivating, and deploying human resources where and when needed. Policies are required to be drafted, adapted, and implemented; while efficiently satisfying the administrative needs of employees through technology, shared services, or outsourcing etc. This leads to the constant application of organizational policies when done properly.

5 0
3 years ago
Airborne Airlines Inc. has a $1,000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest pa
ivann1987 [24]

Answer:

7.52%

Explanation:

First and foremost ,the yield to maturity on the old issue is computed using the rate formula in excel as calculated below:

=rate(nper,pmt,-pv,fv)

the nper is the number of times the bond would pay annual coupon interest of $106,which is 20 times

pmt is the amount of annual coupon payment which is $106

pv is the current price of the bond at $860

fv is the face value of the bond at $1000

=rate(20,106,-860,1000)=12.54%

The yield to maturity on the new issue is 12.54%  as well

after-tax cost of debt=pretax cost of debt*(1-t)

pretax cost of debt is yield to maturity of 12.54%

t is the tax rate of 40% or 0.4

after-tax cost of debt=12.54% *(1-0.4)=7.52%

5 0
3 years ago
Albert and Alberta love the University of Florida and want to support the school in every way. They always like to drink Gatorad
skelet666 [1.2K]

Answer:

A. Loyalty

Explanation:

Brand Equity is the term used to describe the identity of a specific brand that has been built to be recognized and followed by its customers with loyalty.

Loyalty related to Brand Equity is the main factor in placing product quality and image as one of the company's marketing strategies. This is because it makes the consumer "fall in love" with the product offered, refusing to exchange it for similar ones, but who do not have the same identity. An example of this can be seen in the question above, where Albert and Alberta refuse to stay at a gym that does not offer their favorite drink. Because of this, they prefer to leave this gym and look for one that provides the drink they want.

7 0
3 years ago
Read 2 more answers
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