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Ilia_Sergeevich [38]
3 years ago
6

An inventory loss from market decline of $1,200,000 occurred in May 2015, after its March 31, 2015 quarterly report was issued.

None of this loss was recovered by the end of the year. How should this loss be reflected in the company's quarterly income statements(Three Months Ended; 3/31/15; 6/30/15; 9/30/15; 12/31/15)?
Business
1 answer:
JulsSmile [24]3 years ago
8 0

Answer:

The answer is:

The inventory loss should be recorded entirely in the second quarter that ends in 6/30/2015 since losses have to be recorded as soon as the company recognizes them. The other quarters should not reflect any of the losses associated with this event.

Explanation:

The accrual accounting principle states that accounting transactions have to be recorded in the period when they actually happen. The conservatism principle states that liabilities and losses have to be recorded as soon as they are recognized.

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Answer:

The Price of Cocaine would rise drastically

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3 years ago
What are specialist shops​
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A shop that sells one type of thing
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3 years ago
Francis works for a local fly-fishing shop. The shop allows employees to purchase two fly rods per year at a discount. This year
RUDIKE [14]

The amount of discount that has to be included in Francis's income is 0.

<h3>How to solve for the discount amount</h3>

The amount of the discount - sales price

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= $50

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Next we solve for the gross profit as

sales price x gross profit rate

= 300 x 30%

= 90

Given the amounts that we have here we have to conclude that the amount to be included in the account is 0

Read more on what a discount is here:

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One of the main responsibilities employers have under OSHA is to: A. Conduct energy audits B. Notify OSHA of any workplace injur
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The use of accelerated depreciation:____.a. discourages investment in plant and equipment. b. increases expenses and decreases c
Elena-2011 [213]

Answer:

c. initially decreases the firm's taxes

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