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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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An overly optimistic sales budget may result in Group of answer choices increases in selling prices late in the year. insufficie
N76 [4]

Answer:

excessive inventories.

Explanation:

If there is an overall optimistic sales budget so there would be the excessive inventories as the sales budget predicts that in the future the number of units is to be sold for the given period of time. And, when this budget would be optimistic so it over predicted the sales due to this there would be the chances of the excessive inventories

hence, the last option is correct

8 0
2 years ago
Ashley eats two bananas during a particular day. The marginal benefit she enjoys from eating the second banana a. can be thought
Xelga [282]

Answer:

a. can be thought of as the total benefit Ashley enjoys by eating two bananas minus the total benefit she would have enjoyed by eating just the first banana.

Explanation:

The marginal benefit is the satisfaction can is directly associated with the consumption of an extra good or service. The marginal benefit is of a product is the satisfaction derived from consuming more of that product.  The marginal benefit of a product depends on the special traits of the product and the intensity of the consumer's need.

To get the marginal benefit of a product, we have to separate the satisfaction from the last consumed unit from the previous one. Marginal is associated with the benefit enjoyed by consumption of the last unit only.

3 0
3 years ago
Tyron is saving up money for a down payment on a motorcycle. He currently has $2979, but knows he can get a loan at a lower inte
kobusy [5.1K]

Answer:

6.6 Years

Explanation:

Number of years = \frac{In(\frac{FV}{PV}) }{r}

FV = future value

PV = present value

r = interest rate

\frac{In(\frac{3830}{2979}) }{0.038} = 6.6 years

3 0
2 years ago
Which of the following statements about electronic résumés is false? a. directions for submitting electronic résumés should be f
Jet001 [13]

An electronic resume is one that is sent to a potential employer via email. An electronic résumé is used to apply for employment online.

<h3>What makes an effective electronic resume?</h3>

On an electronic resume might be provided in a distinct keyword section or integrated into the text. All text should be positioned to the left and in a plain typeface. Underlining, bolding, italics, and bullets should be avoided since they can cause problems with older OCR software.

Thus, Option D would be the false statement about electronic resumes.

For more information about Electronic resume refer to the link:

brainly.com/question/1297851

7 0
1 year ago
Beerbo Inc. traded a used truck for a small computer. Before this exchange of non-monetary assets (ENMA), Beerbo's balance sheet
rjkz [21]

Answer:

the total fair value given by Beerbo in this transaction is $73,000

Explanation:

According to IAS 16 :

If the Exchange of Non Monetary Asset is of Commercial Substance, the Asset Acquired is measured at Fair Value of Asset given up.

When Fair Value of Asset Acquired is more evident the Asset Acquired is measured at Fair Value of Asset Acquired.

<u>Total Value Given Up:</u>

Fair value of the small computer $37,000

Add Cash                                       $36,000

Total Value                                    $73,000

4 0
2 years ago
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