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3 years ago

Lower-of-cost-or-market as it applies to inventory is best described as the:

Business

1 answer:

Verdich [7]3 years ago

4 0

Answer:

The correct answer is A

Explanation:

Lower of market or cost rule is the one which states or describe that a business or firm need to record the inventory cost at lower, that means whichever cost or the current market price is lower.

It is the term which is best illustrated as the drop or decrease of future utility below the original or the actual cost of the inventory.

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Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is no

kogti [31]

Answer:

The manufacturer should announce a guaranteed mileage of 44528 miles

Explanation:

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean $\mu$ and standard deviation $\sigma$ , the zscore of a measure X is given by:

$Z = \frac{X - \mu}{\sigma}$

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

In this problem, we have that:

$\mu = 47900, \sigma = 2050$

What guaranteed mileage should the manufacturer announce

Only until the 5th percentile will have to be replaced, which is the value of X when Z has a pvalue of 0.05. So it is X when Z = -1.645.

$Z = \frac{X - \mu}{\sigma}$

$-1.645 = \frac{X - 47900}{2050}$

$X - 47900 = -1.645*2050$

$X = 44528$

The manufacturer should announce a guaranteed mileage of 44528 miles

6 0

3 years ago

Read 2 more answers

When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts

PSYCHO15rus [73]

Answer:

True

Explanation:

statement of cash flows can be regarded as financial statement which gives analysis of how cash as well as cash equivalent is affected by any changes in balance sheet accounts.

The indirect method of statement of cash flows begins with loss or the net income as well as the substraction of values from non cash revenue which result in case flow as a result of operating activities.

7 0

3 years ago

The Securities and Exchange Commission was a New Deal program designed to regulate __________. importing quotas farming practice

Softa [21]

The Securities and Exchange Commission was a New Deal program designed to regulate stock market.

<h3><u>Explanation:</u></h3>

The place where the trading of the public listed companies takes place refers to the stock market. This is a method that is used by the companies to raise the capital. Those companies that wishes to raise capital would be offering the shares to the public in general as an initial public offering. This is the place of meeting of the stock sellers and buyers.

The buyers of the stock market will try to get stocks at a reduced rate so that they can sell that for profits at later stages. The stocks can be considered as a smaller portion of ownership that a buyer can enjoy in a public company. A new deal program that is being designed for the regulation of the stock market is the Securities and Exchange Commission.

8 0

3 years ago

Read 2 more answers

Machinery purchased for $64,200 by Sheridan Co. in 2016 was originally estimated to have a life of 8 years with a salvage value

ArbitrLikvidat [17]

Answer:

Sheridan Co.

a. It is not necessary to correct the prior year's depreciation. Depreciation is an accounting estimate and does not require the adjustment of prior year's accounts when there is a correction in its estimates.

b. Entry to record depreciation for 2021:

Debit Depreciation Expense $4,387

Credit Accumulated Depreciation $4,387

To record the depreciation expense for the year.

Explanation:

a) Data and Calculations:

Purchase of machinery in 2016 = $64,200

Original estimated useful life = 8 years

Salvage value = $4,280

Depreciation amount = $59,920 ($64,200 - $4,280)

Depreciation expense per year = $7,490 ($59,920/8)

Accumulated depreciation for 5 years = $37,450

Net book value = $26,750 ($64,200 - $37,450)

Remaining estimated useful life = 5 years

Salvage value = $4,815

New depreciable amount = $21,935 ($26,750 - $4,815)

Depreciation expense per year = $4,387 ($21,935/5)

4 0

3 years ago

Which of the following are true if you pay only the minimum amount each month towards your credit card bill?a. You will be charg

BigorU [14]

Answer:

The correct answer is A and C as both are true statement.

Explanation:

Credit Card is a facility which is offered by banks to borrow money and it could be used by the borrower for buying expensive goods and the services up front. It has a time period, in which the borrower need to make payment for the amount used by the borrower along with the interest charged.

So, if the borrower paid the minimum amount towards the credit card, then the borrower is still in debt until clears or paid the whole amount and also will be charged the interest against the remaining balance or amount.

4 0

3 years ago