When a small business owner has two employees but trusts each one to have their own cash register and handle the money of the business separately, that means that the owner supports the establishment of responsibility. One instance where this could happen is at a small deli or coffee shop.
Answer:
Explanation:
The applicable accounting standard IAS 2 (Inventory) requires that inventory be carried at the lower of cost or net realizable value.
Initial recognition of inventory is at cost. In other words, where the cost is lower than the net realizable value, inventory is written down to the net realizable value.
As such, when inventory declines in value below original (historical) cost, and this decline is considered other than temporary, the maximum amount that the inventory can be valued at is the net realizable value.
The right option is b. Net realizable value
Answer:
I’m pretty sure it’s B. interest rate
Answer:
b. An individual demand for an item will decrease causing a downward slope.
Explanation:
The law of demand states that when other factors are held constant, the price and demand have inverse relationship, which means that as one increases, the other one decreases. So in the case of the of your problem, as the price of an item increases, the demand will decrease (the opposite would be true as well).
So when you put it in a graph, the demand curve would be sloping downwards.
Answer:
Cr. Dr.
Equipment $66,880
Account Payable $62,600
Cash $4,280
Explanation:
All the costs incurred to make asset usable should be capitalised.
Equipment Cost = Purchase Price + Sales Tax + Freight Charges + Insurance Charges + Installation
Equipment Cost = $59,000 + $3,600 + $840 + $1,040 + $2,400
Equipment Cost = $66,880
