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3 years ago

Use the following data to determine the total dollar amount of assets to be classified as current assets

Business

1 answer:

borishaifa [10]3 years ago

6 0

Answer:

the total dollar amount of assets to be classified as current assets is $220,000.

Note that the correct option is $220,000 based on the information provided in the question. However, this is not included in the option. Kindly confirm the correct options from your teacher.

Explanation:

Current assets can be described as a group of assets that are can be easily converted to cash within a year. Current assets are therefore assets which are expected to be used, sold or consumed in a normal business operations within a financial year.

Current assets is one of th component of a balance sheet and its components include cash, inventories, account receivables, advance payment (prepayments), and others.

For this question, the total dollar amount of assets to be classified as current assets can be determined as follows:

Carne Auto Supplies

Current Assets Amount Determination

December 31, 2012

Particulars Amount ($)

Cash 60,000

Prepaid Insurance 40,000

Accounts Receivable 50,000

Inventory 70,000

Total current assets 220,000

Therefore, the total dollar amount of assets to be classified as current assets is $220,000.

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Sladkaya [172]

Answer:

$64

Explanation:

The computation of final lower-of-cost-or-market inventory value is given below:-

Ceiling LCM = Estimated selling price - Cost to disposal or NRV ($68)

Floor LCM = NRV - Normal profit

= $68 - $4

= $64

Conditions: 1)When the cost of replacement is greater than the LCM ceiling then the LCM ceiling is considered the market cost.

2)If the cost of replacement is greater than floor LCM then floor LCM is considered to be the market cost

So, second condition is satisfied.

The market value is $64, cost is $76.

Lower of cost or market rate is $64

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3 years ago

Which of the following is a criticism of the national income and product accounts?

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I believe the correct answer among the choices is:

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3 years ago

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4 years ago

Renata's US-based lifestyle company decides to invest in a company based in France that specializes in health and wellness. This

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