The statement which does not accurately describe the lower of cost or net realizable value valuation method for inventory is:
- <u>C. The journal entry to write down inventory does not affect pretax income</u>
Inventory has to do with the accurate listings of the goods which a business has in stock for purposes of selling. This is important because it helps to prevent theft and also to properly calculate profit and loss.
As a result of this, we can see that the lower of cost method for making inventory is a type of inventory which states that a business must have records of goods which cost lower than their current market pricing and this is used when there is a reduction in market prices
Therefore, the correct answer is option C because the journal entry does not show the pretax earnings.
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Answer:
Purchases= $3,200
Explanation:
Giving the following information:
The asset account "office supplies" has a balance of $800 at the beginning of the year. The amount on hand at the end of the year is $500. The company has calculated the Office Supplies expense for the year to be $3,500.
To calculate the number of purchases, we need to use the following formula:
Purchases= expense of the year + ending balance - beginning balance
Purchases= 3,500 + 500 - 800= $3,200
Answer:
(b) purchase contract with no contingencies.
Answer:
Limited liability company
Explanation:
A limited liability company is a company where the liabilities of partners is limited to the amount invested in the company. A limited liability company has features of both a partnership and a sole proprietorship
The partnership is made up of a general partner and the limited partners. the general partner is involved in the daily running of the business. The limited partners are not involved in the daily running of the business. They just contribute capital.
In this question, the person involved in the running of the business is the general partner while the other 9 friends are the limited partners.