Answer:
The correct answer is letter "A": Merchandise Inventory.
Explanation:
Lower-of-cost-or-market value is a strategy by which the costs of inventory on the company's Balance Sheet is reported at historical value -purchase cost- or market value, whatever it is lower. The lower-of-cost-or-market approach considers the value of inventory can change, meaning it can increase but it can decrease as well. For both purposes, the lower-of-cost-or-market value can be used. This technique follows the Generally Accepted Accounting Principles (GAAP).
Therefore, <em>merchandise inventory, which can fluctuate in price during a period, is reported using the lower-of-cost-or-market value method.</em>
Answer:
December 31
- Dr Equity Investments account (Blue Mission) 34,000
-
Cr Revenue from Investments account 34,000
Explanation:
Since Base owns 34% of Blue, they should record 34% of Blue's net income = $100,000 x 34% = $34,000
December 31
Dr Equity Investments account (Blue Mission) 34,000
Cr Revenue from Investments account 34,000
Equity investments account is an asset account and it increases, therefore it should be debited.
Revenue from investments is a revenue account and all revenue is credited.
Answer:
A. External, internal and interactive marketing
Answer:
Explanation:
Bonds have some advantages over stocks, including relatively low volatility, high liquidity, legal protection, and a variety of term structures.
Answer:
17,080 ounces.
Explanation:
Given that,
Budgeted production = 8,500
Raw material required per unit = 2 ounces
Opening inventory = 3,400
Direct material to be purchased:
= (Budgeted production × Raw material required per unit) + Closing inventory - Opening inventory
= (8,500 × 2 ounces) + (20% × 8,700 × 2) - 3,400
= 17,000 + 3,480 - 3,400
= 17,080 ounces.
