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atroni [7]
3 years ago
15

At the end of year 1, a company reduced its inventory cost from $100 to its net realizable value of $80. As of the end of year 2

, the inventory was still on hand and its net realizable value increased to $150. Under IFRS, what journal entry should the company record for year 2 to properly report the inventory value?
A. Debit inventory for $20 and credit expense for $20.
B. Debit inventory for $70 and credit expense for $70.
C. Debit inventory for $70, credit retained earnings for $50, and credit expense for $20.
D. Debit inventory for $20, debit expense for $30, and credit retained earnings for $50.
Business
1 answer:
Dahasolnce [82]3 years ago
4 0

Answer:

A. Debit inventory for $20 and credit expense for $20.

Explanation:

We should remember that we cannot recognize a gain before is realized. Increasing the inventory for their net realizable value would reocgnize the gain before selling the good that is not correct. The comapny will adjust to their original cost of 100 that is, reverse the 20 dollars loss of the previous year.

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Explain the imortance of feedback in the communication process.(3marks)
liraira [26]
Feedback gives somebody another point of view other than there own allowing them to improve themselves
7 0
3 years ago
Delta Insurers typically affirms or denies claims within 120 days after it receives proof of loss statements. Which statement is
mamaluj [8]

Answer:

Option A is correct

Explanation:

The 2 Option are:

<em>i. The firm Delta Insurers typically affirms claims within 120 days after it receives proof of loss statements </em>

<em>ii. The firm Delta Insurers typically denies claims within 120 days after it receives proof of loss statements.</em>

<em />

Delta insurance company is a typical insurance company that operates it business in line with the Insurance practice code in its operation country. Failure of perform those duties strictly will lead to revoke of operational license which will incur consequential loss for the Insurance Company.

Delta Insurers insures against peril of Vehicle, Fire, Burglary, Consequential loss, Business Interruption and so on.

The insurer however have its own mode of settling claims as stated in the Policy form. The statement might be stated in there that "<em>we typically affirms claims within 120 days after we receives proof of loss statements". </em>No insurer can states in its policy form that "<em>we typically affirms claims within 120 days after it receives proof of loss statements", t</em>his is against the code of conduct of Insurance business

<em />

7 0
3 years ago
You deposit $5000 at end of each year for 10 years. assume you are earning 8.88% per year for the entire problem. after 10 years
yan [13]
I say around 15-25 yrs but really i am not sure just being honest 

8 0
3 years ago
Every year 3 Managers are promoted to Partner level.
Sophie [7]

Answer: 2 years

Explanation:

Years of existing of the firm=30 years

Number of associates= 300,

Number of Managers= 70;

Number of partners= 30;

Total number of workers=400

Number of years  associates has been changed in last 30 year=30/5=6

Number of years  managers has been changed in last 30 year=30/3=10

Number of times for partner=x

Number of years  partners has been changed in last 30 year=30/x=15

15x=30

x=30/2

x=2 years

6 0
3 years ago
Unlike consumer credit, trade credit does not involve the use of a
hammer [34]

Answer:

Trade credit means many things but the simplest definition is an arrangement to buy goods and/or services on account without making immediate cash or check payments. Trade credit is a helpful tool for growing businesses, when favorable terms are agreed with a business's supplier.

Explanation:

Trade credit allows businesses to receive goods or services in exchange for a promise to pay the supplier within a set amount of time. New businesses often have trouble securing financing from traditional lenders; buying inventory, for example, on trade credit helps increase their purchasing power.

3 0
2 years ago
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