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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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Answer:

b

Explanation:

Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio

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3 years ago
On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,2
Svetradugi [14.3K]

Answer:

$31,100

Explanation:

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300.

Therefore the amount of stockholders’ equity as of May 31 of the current year can be derived by the formula : Capital = Assets - Liabilities

<u>Assets</u>

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Accounts Receivable, $7,250;

Supplies, $650;

Equipment, $12,000

TOTAL = 40,400

<u>Liabilities</u>

Accounts Payable, $9,300.

Therefore stockholders’ equity = 40,400 - 9,300 = $31,100

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