1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
LenKa [72]
3 years ago
11

What is meant by market in the lower-of-cost-or-market rule?

Business
1 answer:
Pavel [41]3 years ago
7 0

Answer:

Stock is valued at lower of : cost or market price [prudence principle]

Explanation :

Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.

This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.

You might be interested in
Rick's Internet Corporation's balance in Retained Earnings is $30,000. The board of directors directs that $15,000 be appropriat
gtnhenbr [62]

<u>Answer</u> is D. remain at $30,000.

<u>Explanation:</u>

Rick's Internet Corporation balance in retained earnings = $30,000

Appropriated earning for future business expansion = $15,000

This appropriated earning set for future use will have no effect on the total retained earnings, because for appropriate retained earnings,  the entry is to debit the retained earnings account.

Also, it would be board's decision if they want to use the money from the retained earnings or add more capital to it.

6 0
2 years ago
Lee went to great lengths to make sure that Heard was considered an independent contractor and it didn't work. Since Lee made it
tekilochka [14]

The court found the employee status because he had and agreement indicating that he was an independent <em>contractor</em>.

<h3>What is an independent contractor?</h3>

It should be noted independent contractors are the contractors that don't work under an employer. They work independently.

In this case, the court found the employee status because he had and agreement indicating that he was an independent contractor.

Learn more about independent contractor on:

brainly.com/question/7429981

#SPJ1

8 0
2 years ago
Based in Fairmont, WV, the Internet Fraud Complaint Center is run by the FBI and the National White Collar Crime Center with the
9966 [12]

The Internet Fraud Complaint Center, run by the FBI and the National White Collar Crime Center, indeed analyzes fraud-related complaints.

<h3>What is the Internet-Fraud Complaint Center?</h3>

The Internet-Fraud Complaint Center, based in Fairmont, WV, handles the following internet-related complaints:

  • Intellectual Property Rights ( IPR ) matters
  • Computer Intrusions (hacking)
  • Economic Espionage (Theft of Trade Secrets)
  • Online Extortion
  • International Money Laundering.

Thus, the Internet-Fraud Complaint Center is run by the FBI and the National White Collar Crime Center to analyze fraud-related complaints.

Learn more about the Internet Frauds at brainly.com/question/3422329

5 0
2 years ago
Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October. Sales (
Kipish [7]

Answer:

Net operating income is $300

Explanation:

We know that,

The net operating income = Sales - variable cost - fixed expenses

And, the contribution margin = Sales - variable cost

So, contribution margin - fixed expenses = Net operating income

Since we have to compute the net operating income for 3,500 units So, first we have to compute the contribution margin per unit which is shown below:

= Contribution margin ÷ number of units

= $48,000 ÷ 4,000 units

= $12

Now for 3,500 units, the contribution margin would be

= 3,500 units × $12

= $42,000

So, the net operating income would be

= $42,000 - $41,700

= $300

The fixed expenses would not be changes. It remains constant

5 0
3 years ago
I need help on this this is 22 points I need help on question 7&amp;8
Burka [1]

Answer:

4.a

3.e

5.b

2.d

1.c

Explanation:

7 0
3 years ago
Other questions:
  • John is an entrepreneur who plans to enter a franchise contract with a hotel business. which of these is an advantage that John
    14·2 answers
  • Draw a supply curve of smartphones. Label it. Use any prices and quantities you wish but make your supply curve obey the law of
    15·2 answers
  • Barker Corp. has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the marke
    10·1 answer
  • If we could accurately forecast interest rates, financing decisions would be easy. Although it's difficult to predict future int
    9·1 answer
  • In the bond market, the bond demanders are the ________ and the bond suppliers are the ________.
    9·1 answer
  • Luke and Mia are selling their home. They listed their house three months ago at an extremely high selling price, a price they r
    13·1 answer
  • With regard to New United Motor Manufacturing, Inc. (NUMMI), why did General Motors (GM) enter into a strategic alliance with To
    5·1 answer
  • Bachelor’s degrees are typically earned in _____. a. 1-2 years b. 2-3 years c. 3-4 years d. 4-5 years Please select the best ans
    14·2 answers
  • Glenda runs a flower delivery service with six people. Quite recently, the business has started suffering and there has been an
    8·2 answers
  • Bledsoe Corporation has provided the following data for the month of November: Beginning Ending Raw materials $ 25,100 $ 21,100
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!