1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
katrin [286]
3 years ago
15

When inventories go down in value, accountants adjust the value of the inventory that is recorded on the balance sheet. Sometime

s inventory goes up in value. Do accountant's ever adjust the value of inventory upwards? What are the general guidelines that accountant's follow in recording inventory value?
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
4 0

Answer:

Accountants do not adjust the value of inventory upwards.  The general guidelines in recording inventory value are to recognize the ending inventory value at the lower of cost or market value and to ensure that transactions are recorded in accordance with the conservatism principle of generally accepted accounting principles.

Explanation:

The conservatism principle requires that all probable losses are recognized as soon as they can be reasonably estimated, while gains should be recognized only when they are fully realized.  The lower of cost or market value (LCM) method states that inventory should be recorded at the lower of either the historical cost or the market value.  The LCM is in line with the conservatism principle.

You might be interested in
Here are a number of different ethical issues you could discuss with your employees. What topics would serve as a good basis for
Ludmilka [50]

Answer:

The topics like what is ethics?, emerging of ethical values and why they are important in making a better society than before.

Explanation:

The reason is that not all the employees are well educated and professionals but ethics can be learned easily because it depends upon the judgement and doing good for others and yourself.

So the best thing is that you must start course with the introduction of ethics and then how ethical values emerged in the history and why are important for the society. This let them understand that acting ethical is very important because it provides safety to all of the individuals and creates better environment that we all desire.

3 0
3 years ago
UPS, a delivery services company, has a beta of 1.4, and Wal-Mart has a beta of 0.9. The risk-free rate of interest is 4% and th
Elena-2011 [213]

Answer:

10.9%

Explanation:

to calculate the expected return of the portfolio, we first need to calculate the portfolio's beta:

the portfolio beta = (beta UPS stock x weight UPS stock) + (beta Walmart stock x weight Walmart) = (1.4 x 50%) + (0.9 x 50%) = 0.7 + 0.45 = 1.15

portfolio's expected return = risk free rate + (portfolio beta x market risk premium) = 4% + (1.15 x 6%) = 4% + 6.9% = 10.9%

7 0
4 years ago
As part of an economics class project, students were asked to randomly select 500 New York Stock Exchange (NYSE) stocks from the
svet-max [94.6K]

Answer:

Descriptive Statistics

Explanation:

Descriptive Statistics is a technique in which data is collected and then analysis is made on the selected data through numerical techniques or graphs. In the given question the students have selected stocks and are analyzing its performance through graphical and numerical technique. This is descriptive statistics.

6 0
3 years ago
The journal entry to record the use of utilities in a factory could include which two of the following: (You may select more tha
evablogger [386]

Answer:

The correct options are:

A. Debit to Factory Overhead

D. Credit to Factory Utilities Payable

Explanation:

The debit entry of the use of utilities in  a factory would be recorded in factory overhead since cost of utilities is a not a direct factory cost.

However, the corresponding credit would be in the factory utilities payable as an obligation awaiting payment to be made to  the supplier of  the service being enjoyed by the factory in order to run on daily basis

6 0
3 years ago
Read 2 more answers
Synovec Corporation is expected to pay the following dividends over the next four years: $6.60, $17.60, $22.60, and $4.40. After
Alexandra [31]

Answer: $245

Explanation:

If the required return on the stock is 7 percent, the current share price would be calculated as:

= 6.60/1.07 + 17.60/1.07^2 + 22.60/1.07^3 + 4.40/1.07^4 + [(4.4 × 1.0525) / (7%-5.25%)] / 1.07^4

= $245.23

= $245 approximately

Therefore, the current share price will be $245

3 0
3 years ago
Other questions:
  • Darell Hair​ Stylists's adjusted trial balance and statement of​ owner's equity follow.
    15·1 answer
  • One consequence of automation is that producers need fewer                                                      
    13·2 answers
  • According to your textbook, a 1998 study of price variation found that what percentage of all the goods and services the US econ
    10·1 answer
  • where x1 and x2 represent number of units of production of basic and advanced iPods, respectively. Production time required for
    11·1 answer
  • The marginal prospensity is to consume 0.75, marginal prospensity to invest is 0.3 and the marginal prospensity to import is 0.2
    10·1 answer
  • Geraldine Parker, the owner of Gi Grs Dance Studio, Inc., started the business by investing $10,000 cash and donating a building
    10·1 answer
  • Which action can hurt your credit score? I. Paying your phone bill late. II. Taking the bus to work. III. Maxing out several cre
    6·2 answers
  • The social security deduction is 6.2 percent of a person's salary up to a limit of 102k the medicare deduction ais up to 1.45 pe
    14·1 answer
  • Select the question that can be answered using only raw data. Multiple choice question. Which of the perishable items used by a
    9·1 answer
  • B. the budgeted indirect-cost driver rate for y based on the number of machine-hours is in excess of x by ________per machine ho
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!