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Schach [20]
3 years ago
12

A Co. showed the following values for its inventory as of the end of its fiscal year: Historical cost $100,000 Current replaceme

nt cost 70,000 Net realizable value [NRV] 90,000 NRV less a normal profit margin 80,000 Fair value 96,000 What amount should the company report for inventory on its balance sheet
Business
2 answers:
Levart [38]3 years ago
4 0

Answer:

$90,000

Explanation:

The reason is that the International Accounting standard IAS 3 Inventories says that the asset must be reported at lower of:

Cost &

Net realizable value

Here the cost is $100,000 and NRV is $90,000, which means that the inventory must be reported at $90,000 which is the lower value.

PIT_PIT [208]3 years ago
4 0

Answer:

The value of the inventory is $90,000,NRV

Explanation:

According  to International Financial Reporting Standard,specifically IAS 2, inventories should be valued at the lower of cost or net realizable value.

In this scenario net realizable of $90,000 is lower than cost of $100,000,hence the inventory is recorded in the balance sheet at $90,000.

The necessary entries to bring inventory value to $90,000 is by crediting inventory $10,000 with a corresponding debit entry posted to statement of profit or loss(income statement)

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Choose a real or made up example of a company, and describe at least three fixed costs the company has. (1-3 sentences. 1.5 poin
goldenfox [79]

Answer:

Let us take ABC Company, a manufacturing company to be our example company in discussing the fixed costs. Fixed costs are costs that remain constant for a given period of time regardless of changes in volume. The ABC Company’s fix costs includes the rent, insurance on property, and depreciation on machinery and equipment.

The rent is a fixed cost because it has a fixed amount which is to be paid every month. And the insurance on property is a fixed costs since the amount of the insurance that the company pays every month is already fixed and cannot be changed. The depreciation on machinery and equipment is also a fixed costs because the amount of depreciation is already computed and allocated every year to be expended and recorded at fixed cost.

5 0
3 years ago
Halestorm Corporation’s common stock has a beta of 1.13. Assume the risk-free rate is 4.8 percent and the expected return on the
nadezda [96]

Answer:

13.275%

Explanation:

Using Capital Asset Pricing Model we have,

Cost of equity = Risk free return + Beta (Market return - Risk free return)

Provided risk free rate of return = 4.8%

Beta = 1.13

Market rate of return = 12.3%

Therefore cost of equity = 4.8% + 1.13 (12.3 - 4.8)

= 4.8% + 8.475%

Therefore, Halestorm Corporation's cost of equity

= 13.275%

5 0
3 years ago
Income inequality is greater within nations than among nations<br> A true<br> B false
mrs_skeptik [129]

Answer:

true okkkkkkkkkk lollolol

8 0
3 years ago
The accounts payable account is listed in the chart of accounts as an asset.<br> True<br> False
mafiozo [28]

Answer:

False

Explanation:

Payables are payment the business is expected to make. Money comes from the company and goes to third parties. Payables represent goods and services obtained from suppliers, but payments have not been made. They are debts that the business owes others.

Because payables are money that the business owes others, they are listed as liabilities. Liabilities are the debts that a business acquires as it engages in its regular activities. Assets are the items of value that a business own. Payables are not assets as they are financial obligations the company is expected to meet.

6 0
4 years ago
In contrast to the post-World War II period, before 1940 the government rarely intervened in the economy to influence inflation
Varvara68 [4.7K]

Answer: the government rarely intervened in the economy to influence inflation or unemployment rates.

Explanation:

Up until the Great Depression of 1929 to 1932, the government followed a laissez-faire policy where they rarely intervened in the market to influence inflation or unemployment rate.

After the Great Depression and then the second world war, this changed and the Federal government became very active in the economy through fiscal policy and massive government spending enabled the U.S. to surge ahead of other nations in terms of development.

3 0
3 years ago
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