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olasank [31]
3 years ago
10

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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Which of the following items is included in the financing activities section of the statement of cash flows?
Lyrx [107]

Option B, Cash effects of transactions obtaining resources from owners and providing them with a return on their investment.

Explanation:

Option "A" is incorrect because loans are transacted and collected depending on the nature of the activity.

Option "C" is wrong because investment activity covers procurement and disposal of investment and property and equipment.

Option "D" is wrong since transfers of cash to net income would be subject to operations

The financial transactions in the cash flow statement depends on how a company receives money and returns the capital market back to creditors. These activities include the payment of cash dividends, the addition or change of loans, or the issuance and sale of more stocks.

3 0
3 years ago
Norma is organizing an event for her company. She has to create billboards that will be placed at different units of the firm. S
Lera25 [3.4K]
Autocratic should be the answer
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7 0
4 years ago
An insurance policy is _____.
Marysya12 [62]
An insurance policy is Teara Jones A.K.A "Lil Boat"
6 0
3 years ago
Read 2 more answers
The Jones Company has just completed the third year of a​ five-year MACRS recovery period for a piece of equipment it originally
Ipatiy [6.2K]

Answer:

a. What is the book value of the​ equipment?

  • $86,976

b. If Jones sells the equipment today for $184,000 and its tax rate is 35%​, what is the​ after-tax cash flow from selling​ it?

  • ($184,000 - $86,976) x (1 - 35%) = $97,024 x 65% = $63,065.60

c. Just before it is about to sell the​ equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if​ so, what is​ it?

  • the cost to taking the new order is the opportunity cost of selling the equipment, which is $63,065.60.

Explanation:

MACRS depreciation rate:

Year             %              Depreciation expense             Carrying value

1                   20%            $60,400                                  $241,600

2                  32%            $96,640                                  $144,960

3                  19.20%        $57,984                                  $86,976

4                  11.52%         $34,790.40                             $52,185.60

5                  11.52%         $34,790.40                             $17,395.20

6                  5.76%          $17,395.20                              $0

5 0
3 years ago
When considering marginal revenue versus marginal costs, marketers must ensure that.
LenaWriter [7]

It should be noted that when considering marginal revenue versus marginal costs, marketers must ensure that marginal revenue exceeds marginal costs.

<h3>What is marginal revenue and marginal costs?</h3>

The marginal cost of production serves as the change in total cost that is bern incured as a result of making or producing one additional item.

Marginal revenue (MR) on the other hand serves as the incremental entity.

However, In equilibrium, marginal revenue equals marginal costs.

Learn more about marginal revenue at;

brainly.com/question/25623677

4 0
2 years ago
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