How is the LIFO method used to calculate inventories? Is this permissible according to GAAP?

Q: How to calculate inventories

A: Inventories are the assets for the business in which the company is dealing for earning the income…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A:

Q: Define Unclassifi ed balance sheet

A: Introduction: Unclassified balance sheets are typically utilized only for internal purposes.…

Q: What

A: Introduction:- The following one of the conditions is required to satisfied for segment reporting as…

Q: What are the distinguishing characteristics between REIT data and the NCREIF Property Index?

A: NCREIF property index helps in measuring the performance of the investment made in real estate with…

Q: is amortization of patent included in statement of costs of goods manufactured?

A: The income earned by a corporation after deducting the direct costs of manufacturing its products is…

Q: Outline how you would incorporate the following into the CCAPM:a. Liquidity.b. Nontraded assets. (Do…

A: The question is based on the concept of the consumption based capital asset pricing model (CCAPM).…

Q: Define inventory.

A: Inventory: Inventory consist of total of three components: raw material, work-in-process and…

Q: How do I compute for the Started,completed, and transferred-out in Weighted Average EUP?

A: Started units are units at total number of units at the start of the process. Completed and…

Q: sponding item on a diffe or key amount on the sa ustry average.

A: The correct statement is  b. a total or key amount on the same statement

Q: hoose the letter of answer  Inventories are usually written down to net realizable value a. Item…

A: Inventory is valued at lower of cost or net realisable value. Net realisable value is computed by…

Q: What happen when the inventories increasing or deacresing

A: Inventories form a part of assets of the entity and comprises of stock of raw material, work in…

Q: how does the change in accounting of nonrecurring items?

A: Non Recurring items are the ones that do not occur frequently.

Q: What are the valuing inventories?

A: Cost:   It is the economic value incurred by an organization to manufacture a product or to render a…

Q: What are some of the techniques of disclosure for thebalance sheet?

A: Balance Sheet: Balance Sheet is one of the financial statements which summarize the assets, the…

Q: How much should be presented as "Trade and other receivable" under current assets?

A: Particulars Amount (P) Trade Receivables 725000 Trade Notes Receivables 100000 Less: Sales…

Q: When are the original cost and current book value are relevant?

A: Orginal cost is the cost paid to acquire the assets  Whereas the current book value is the value of…

Q: What are the different risks associated in the accounting of inventories?

A: Answer: Inventories are the current assets of the company which are realizable within 12 months from…

Q: What method of determining operating income is required under GAAP for financial statement…

A: There are two basic types of accounting methods to determine the operating profit of a company which…

Q: What determines the order of the information shown on thebalance sheet?

A: Balance sheet is a part of financial statements that lists company’s assets, liabilities and…

Q: What is the adjusted inventory?

A: Calculation of Adjusted Value of Inventory Particulars Amount Unadjusted Inventory Balance…

Q: When is LIFO Inventory a preferred method?   **In regards to Financial Accounting.

A: LIFO (Last in, First out ) : It is an accounting method that an organization uses to determine the…

Q: In accordance with IAS 2 Inventories define the terms "inventories" and "net realisable value”.…

A: Inventories as the name states is one the asset to the company or any business which comes under the…

Q: What guidance does the Codification provide concerning reporting inventories above cost?

A: Inventory management: Inventory management is defined as a set of processes clearly determined for…

Q: How is inventory valuation made? Explain?

A: Stock or inventory are important yet inert resources lying with the organization at the end of an…

Q: Since AssetID is a number identifying assets in a fixed asset ledger, it would be considered to be…

A: Asset refers to any economic value resource for an individual, corporation or a country. It…

Q: Th e carrying value of inventories refl ects: B . their current value.

A: Carrying value: The face amount of bond, less unamortized discount, or plus unamortized premium, is…

Q: How to calculate the mark up

A: The markup is calculated with the following formula:

Q: What are reversing entries? Are they required by GAAP?

A:

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: Which are the three types of inventory cost reflected in the balance sheet?

A: Value of Inventory that shows under the asset side of the balance sheet comprises of several…

Q: How are operating items projected on financial statements?

A: Solution:- Operating expenses are indirect expenses which includes selling, distribution, admin…

Q: WHAT IS TOTAL CURRENT ASSETS?

A: The current assets are the assets that can bw converted into cash within one year.

Q: what is current assets

A: Assets are the resources that a firm or an individual owns at a particular time. Assets are created…

Q: The usefulness of the balance sheet is enhanced by classifying assets and liabilitiesaccording to…

A: Balance Sheet: Balance Sheet is one of the financial statements which summarize the assets, the…

Q: When is it necessary to estimate inventories?

A: Inventories are resources which are held to be sold in the market. Inventories can be in the form of…

Q: Explain how to calculate asset turnover ratio.

A: Asset turnover ratio refers to how much sales is generated by every dollar invested in assets by the…

Q: ce sh

A: 1.The asset section of a classified balance sheet for Hashey, Inc.:- Current assets       Cash…

Q: Analyze the rate ofreturn on assets

A: Accounting ratio:   It is a number expressed in terms of another to establish relationship among…

Q: How do you decide the liquidity order (what asset come before the other...expenses vs prepaid vs…

A: Classified balance sheet: The main elements of balance sheet assets, liabilities, and stockholders’…

Q: invoice. Using the historical-cost principle, at which amount will Foster report the equipment on…

A: Historical cost principle: The historical cost principle is one of the basic principles of…

Q: What is a bill of lading?

A: Definition: Sales process: Sales process can be defined as the trading of goods and services…

Q: Determine the following: (a) the net realizable value for each item, and (b) the carrying value of…

A: Inventory valuation under IFRS: Under IFRS the inventory is value can be calculated using any…

Q: Define LIFO inventory pools.

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Costs of a product that are regarded as an asset for financial reporting under GAAP are called

A: Cost of product are regarded as an asset if the product is not yet sold. Product cost are also known…

Q: ess The major IFRS requirements related to accounting for and reporting inventories are O completely…

A: IFRS are the International Financial Reporting Standards that are used for reporting financial…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.