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3 years ago

What is the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory?

Business

1 answer:

Taya2010 [7]3 years ago

5 0

Answer:

The correct answer is letter "D": Prevents overstatement of the value of obsolete or damaged inventories.

Explanation:

The lower-of-cost-or-market method values assets according to the lowest value possible choosing between the market value or the asset's historical cost. This accounting principle is useful to avoid exaggerating the value of obsolete or damaged assets the firm might have in stock.

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Every five years, the Bureau of Economic Analysis (BEA) revises past GDP figures and the methodology involved in computing nat

Scilla [17]

Answer:

E) A and B only.

A. Identifying the qualifying expenditures that lead to the creation of the intellectual property.
B. Deciding how broadly or narrowly to define the concept of intellectual property.

Explanation:

The problem with valuating intellectual property is not what the intellectual property is worth once it is completed (e.g. patent), the real challenge is to properly identify the costs of developing the intellectual property. Research and development costs are usually reported as expenses for this same reason.

Another problem is to really define what can be considered intellectual property and specially what intellectual property should be assigned value. A trademark is an intellectual property, but most trademarks are really worthless, but some like Apple or Coca Cola are worth millions.

3 0

3 years ago

Martinez Co. borrowed $75,600 on March 1 of the current year by signing a 60-day, 9%, interest-bearing note. Assuming a 360-day

guajiro [1.7K]

Answer:

Note payable 75,600 debit

Interest expense 1,134 debit

Cash 76,734 credit

Explanation:

NOTE: it semes you paste possible answer for a differnt questions.However it is possible to determiante a correct answer:

interest will be calculate as follows:

principal x rate x time = interest

we should match rate and time in the same metric, in this case portion of a 360 days years:

75,600 x 0.09 x 60/360 =<em> 1.134‬</em>

As we take the debt, this interst are expense.

To record this, we will write-off the note principal, post the interest expense and credit the total amount of cash disbursements to pay up the debt.

Note payable 75,600 debit

Interest expense 1,134 debit

Cash 76,734 credit

4 0

3 years ago

Sales of services, $100,000, of which $30,000 was on credit.collected on accounts receivable, $27,300.issued shares of common st

aalyn [17]

The adjusting journal entry for accrued salaries at year-end:

To record the accrued salaries at year-end, Salaries Expense account is debited and Salaries Payable account is credited with the amount of accrued salaries. The adjusting journal entry for accrued salaries at year-end that amounted to $1,000 shall be as follows:

Salaries Expense Debit $1,000

Salaries Payable Credit $1,000

5 0

3 years ago

The process of defining the objectives of a company and then developing a method to achieve those objectives is known as:_______

Makovka662 [10]

The process of defining the objectives of a company and then developing a method to achieve those objectives is known as:<u> Strategic planning</u>.

<h3>What is Strategic planning?</h3>

Strategic planning can be defined as the process of setting up an objectives or goals and then planning how to achieve the sets objectives and goals.

A company or an organization that want to achieve their future goals must tend to make use of Strategic planning.

Therefore The process of defining the objectives of a company and then developing a method to achieve those objectives is known as:<u> Strategic planning</u>.

Learn more about Strategic planning here:brainly.com/question/24864915

#SPJ1

7 0

1 year ago

To tolerate a risk is to simply ignore it? true or false

Rom4ik [11]

Answer:

False

Explanation:

if you ignored it it would get worse and if you ignore you might get hurt aswell.

3 0

3 years ago