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kogti [31]
3 years ago
7

In applying LCM, market cannot be:

Business
1 answer:
arsen [322]3 years ago
5 0

Answer:

The correct option is A,market cannot be less than net realizable value minus a normal profit margin

Explanation:

In determining the lower of cost and market value,the cost of the item of inventory is compared with market facing prices.

The market facing prices are the net realizable value and replacement of the item,in essence lower of net realizable and replacement cost is compared with cost of the  item in order to determine the value at which the inventory is to be valued.

Overall,the lower of net realizable and replacement cost should not be lower than the net realizable value minus a normal profit margin

You might be interested in
A recent Small Business Administration study found that commercial banks provide between ________ percent of the credit availabl
scoray [572]

Answer:

64%

Explanation:

Commercial banks have been found to provide most of the credit needs of small businesses. So small business owners are more likely to get a loan from a commercial bank close to them.

Commercial banks however tend to be reluctant when the economy is stagnant. Mostly small businesses in an economy that is slow have challenges repaying loans collected.

However funds have been made available for small business and are made available primarily through commercial banks

7 0
4 years ago
On December 31, Strike Company sold one of its batting cages for $20,084. The equipment had an initial cost of $223,162 and had
Anna35 [415]

Answer:

Loss on disposal = $2232

Explanation:

To calculate the amount of gain or loss on sale, we must first calculate the net book value or NBV of the asset. The net book value is the difference between the cost of the asset and the accumulated depreciation. The formula for NBV is as follows,

NBV = Cost - Accumulated depreciation

NBV = 223162 - 200846

NBV = 22316

If the sales proceeds are more than the NBV of the asset, the asset is sold on gain and vice versa.

Loss on disposal = 20084 - 22316 = - $2232 or$2232 loss

8 0
3 years ago
What item(s) are tax deductible for consumers who are buying or renting a home?
olasank [31]
Being a new home owner, I can tell you a few tax deductibles. They are:
1. Mortgage interest
2. Property taxes
3 Moving costs

4 0
4 years ago
Rather than hiring a receptionist, a real estate agency decided to use an administrative services company to contract someone fo
Komok [63]

Answer:

outsourcing

Explanation:

Outsourcing is the process where the company wants to hire someone for the completion of the organization work in order to save the cost of the company

here is the given situation, is hiring a permanent receptionist, it is better to contact someone for work in some selected days during each week so that the work of the company could not be stopped also the firm can save the cost

Hence, the third option is correct

7 0
3 years ago
An individual is attempting to determine if it is necessary to register as an investment advisor due to the nature of some of th
statuscvo [17]

Answer:

[D]

Explanation:

Based on the information provided within the question it can be said that the Clients being accredited or qualified would not affect registration requirements or exemptions. This is due to Investment Advisors Act of 1940 and Investment Advisor would have to register if they are giving advice about  securities, being compensation, and being the business of giving advice, regardless if the client are accredited or qualified.

4 0
3 years ago
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