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Anna007 [38]
2 years ago
13

At the end of a reporting period, a company determines that its ending inventory has a cost of $300,000 and a net realizable val

ue of $230,000. What would be the effect(s) of the adjustment to write down inventory to net realizable value?
Business
1 answer:
Maksim231197 [3]2 years ago
7 0

Answer:

1.Cost of Goods Sold Increase by $70,000

2.Gross Profit and Net Profit decrease by $70,000

3.Inventory in balance sheet decrease by $70,000

Explanation:

IAS 2 requires inventory to be measured at the lower of cost or net realizable value.

In our case the inventory will be valued at net realizable value of $230,000 because this is lower.

The effect with this is :

1.Cost of Goods Sold Increase by $70,000

2.Gross Profit and Net Profit decrease by $70,000

3.Inventory in balance sheet decrease by $70,000

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A company's sales forecast would likely consider all of the following factors except:
mixer [17]

Answer:

The correct answer is letter "C": top management's attitude toward decentralized operating structures.

Explanation:

Sales forecasts have the purpose of providing companies with an idea of how their sales environment is going to be within a specific period. By forecasting, firms obtain objective information from inside and outside the company that allows them to maximize the distribution of their resources to cover the customers' demands in the future.

Thus, <em>an executive's attitude over decentralized operating structures is not relevant for sales forecasting.</em>

6 0
3 years ago
Marlo is a compulsive shopper. He shops for apparel online. He wants to get rid of the habit. He seeks help from his friend Thom
frez [133]

Answer:

Determine Mario's current financial standing.

Determine his financial goal.

Determine possible risks that Mario can take.

Create a financial plan aiming to save money for college.

Review and revise the plan regularly.

Explanation:

Plato

8 0
2 years ago
In what federal body do all bills concerning taxes/revenue originate?
Ivenika [448]

Answer:

House of Representatives

Explanation:

House of Representatives, it is the lower house of United States congress that is made up of the House of Representatives and Senate, which is the body of officials that are elected as well as represent the individual districts in their home states.

The work involve the members to vote and pass the laws. And the numbers of the house members is determined through the state population and their term of two years.

Therefore, the federal body of House of Representatives are the one who perform the bills in relation to the taxes or revenue originate.

7 0
3 years ago
The following transactions were completed by the company a. The owner invested $19,000 cash in the company in exchange for its c
satela [25.4K]

Answer:

                      ASSETS                               = LIABILITIES     +  EQUITY  

<u>cash</u>        <u>supplies</u>       <u>equip.</u>        <u>land</u>     =  <u>acc. payable common stock</u>

19,000                                                                                       19,000

-1,500     1,500

                                    12,000                                                  12,000

               400                                                400

<u>-11,000                                           11,000                                                      </u>    

6,500      1,900           12,000       11,000  = 400                     31,000

Explanation:

Dr cash 19,000

    Cr common stock 19,000

Dr supplies 1,500

    Cr cash 1,500

Dr equipment 12,000

    Cr common stock 12,000

Dr supplies 400

    Cr accounts payable 400

Dr land 11,000

    Cr cash 11,000

4 0
3 years ago
What is your primary source of investment funds?
ArbitrLikvidat [17]

Answer:

A. Saving or personal income

Explanation:

7 0
2 years ago
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