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
Lady bird [3.3K]
2 years ago
6

The use of the lower of cost or net realizable value (LCNRV) method to value inventory for reporting purposes is a departure fro

m the accounting principle of: Multiple Choice matching. going concern. historical cost. conservatism.
Business
1 answer:
Wewaii [24]2 years ago
8 0

Question:

The use of the lower of cost or net realizable value (LCNRV) method to value inventory for reporting purposes is a departure from the accounting principle of:

A) Historical cost.

B) Matching.

C) Going concern.

D) Conservatism.  

Answer:

The Right answer is A) Historical Cost.

Explanation:

Inventories are recorded at their cost. If inventory declines in value below its original cost, a major departure from the historical cost principle occurs.

Whatever the reason for a decline-damage, physical deterioration, obsolesce, changes in price levels, or other causes, a company should write down the inventory to Lower-of-Cost or Net Realizable Value (LCNRV) to report this loss.

A company abandons the historical cost principle when the future utility (revenue-producing ability) of the asset drops below its original cost.

Net Realizable Value refers to the net amount that a company expects to realize from the sale of inventory. Specifically, net realizable value is the estimated selling price in the normal course of business minus estimated costs to make a sale.

Example

Inventory  Value - Unfinished                                         $2,000

Less: Estimated Cost of Completion          $  50

Estimated Cost to sell                                    <u>200</u>           <u>     250</u>

<u>Net Realizable Value                                                             750</u>

<u />

Cheers!

You might be interested in
One line for mother. ​
Lapatulllka [165]

“A mother's love endures through all.”

6 0
3 years ago
Has anybody took financial literacy on edmentum? Please reply to this.
zhuklara [117]
Nah. ................
5 0
2 years ago
At February 1, 2022, the balance in Wildhorse Co. supplies account was $3780. During February Wildhorse purchased supplies of $3
otez555 [7]

Answer: $2,700

Explanation:

The balance in Supplies account at the end of February can be calculated using the formula:

= Beginning balance + Supplies purchased in the month - Supplies used in the month

= 3,780 + 3,240 - 4,320

= $2,700

4 0
2 years ago
uppose that Rowan, Inc. builds a high-speed, magnetically powered transportation system from New York to Los Angeles, which is t
IrinaVladis [17]

Answer: b. increasing returns to scale.

Explanation:

With the high capital costs having enabled decreasing average costs for any conceivable level of demand, the company would be making an increasing returns to scale which means that it would be making more return per capital spent.

This will create a natural monopoly because the company will be more efficient in this particular industry and if another company tried to come in, they would have to spend a lot of money to get to a point of increasing returns to scale.

5 0
3 years ago
The most liquid monetary aggregate is: ___.
Alex17521 [72]

M1 is the most liquid monetary aggregate.

A measure of the money supply in an economy is called an aggregate of money. To standardized monetary aggregates in the US, the following labels are applied:

MO The monetary base, usually referred to as the physical money supply or coinage and bank reserves maintained by the central bank,

M1: M0 in its whole plus traveler's checks and demand deposits

All of M1, money market securities, and savings accounts are considered M2.

Despite not being frequently noticed and being distinct from the money supply, the monetary base is a crucial monetary aggregates. The total amount of money in circulation as well as the fraction of commercial bank reserves that is kept on hand by the central bank are included. Since it may be multiplied using the fractional reserve banking system, this is also sometimes referred to as high-powered money (HPM).

Learn more about monetary aggregates here

brainly.com/question/10706198

#SPJ4

7 0
11 months ago
Other questions:
  • Hannigan Lumber employs 155 workers. One of the firm's former employees used the Civil Rights Act of 1991 to file and win a disc
    10·1 answer
  • Monette has posted over 100 book reviews on discussion forums. she also frequently reviews products and services and posts her r
    11·1 answer
  • The selling and administrative expense budget of Ruffing Corporation is based on budgeted unit sales, which are 4,800 units for
    5·1 answer
  • An advantage of the Free Alongside Ship Incoterms Rules is the thorough documentation of the receipt of goods at a port hold are
    13·1 answer
  • Suppose you have the following values for a short-run production process: Q = 20, VC = 100, FC = 600 and MC = 40. Given this, we
    8·1 answer
  • The higher the forgetting rate associated with a brand, product category, or message, the lower the warranted level of repetitio
    10·1 answer
  • John wants to purchase a new motorcycle that costs $10,000 in five years. If John wants to have $10,000 in five years, how much
    8·1 answer
  • If gross margin on a product is 25% what is the corresponding markup percentage​
    8·1 answer
  • Which of these statements is not true when you inactivate tasks (available only in Project Professional) in a project?
    14·1 answer
  • Good Vibrations
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!