When an exchange of inventory items between an enterprise and another entity is undertaken to serve the needs of the enterprise’s customers, the enterprise should record the inventory items received based on the A) Carrying amount of the inventory items relinquished. B) Fair value of the inventory items relinquished. C) Carrying amount of the inventory items received. D) Fair value of the inventory items received. After you make your choice, tell me what theory you are basing your answer on, or what part of the codification applies to the question. explain the answer why?

Q: What is the main difference between a perpetual inventory system and a periodic inventory system?…

A: Inventory can be valued under two methods. 1. perpetual inventory method 2. Periodic inventory…

Q: Peosta Company identifies the following items for possible inclusion in the taking of a physical…

A: Ans  a)Goods are shipped by Peosta to another company Excluded from inventory taking since such…

Q: Generally accepted accounting principles require that the inventory of a company be reported at:…

A: The inventory can be reported at various values as historical cost, market value, net realisable…

Q: If a decision is made to abandon an area of interest, how should any pre-production costs in respect…

A: The answer for the theory question on the treatment of pre-production costs related to an abandoned…

Q: Among the various reasons given for the internal transfer of merchandise inventory of a price above…

A: Correct Answer = Option D = All of the above are considered valid reasons Explanation Internal…

Q: Among the various reasons given for the internal transfer of merchandise inventory of a price above…

A: Internal transfer means where one independent department is transferring the goods to another…

Q: If the net realizable of an entity's inventories is less than its cost, the entry to adjust the…

A: Introduction: Under the lower of cost or net realizable value (LCNRV) method, if net selling price…

Q: Explain issues that analysts should consider when examining a company’s inventory disclosures and…

A: Inventory Disclosure: Inventory disclosure is useful for management to evaluate inventory…

Q: Explain whether the physical inventory should be equal to the amount indicated by the inventory…

A: Solution Concept Perpetual inventory system : The inventory system where the inventory records are…

Q: Carey Company adheres to U.S. GAAP, whereas Jonathan Company adheres to IFRS. Itis least likely…

A: Option B is correct.

Q: Consider each of the following independent situations. Should a company report the goods in its…

A: A consignee is an agent who sells the goods Received on consignment and has no economic control over…

Q: hen the Company Trades with an Investment in Associate, the Reported net income of the Parent…

A: Solution: When the Company Trades with an Investment in Associate, the Reported net income of the…

Q: What is the difference between a perpetual inventoryand a physical inventory? If a company maintains…

A: Differentiate between a physical inventory system and a perpetual inventory system. Perpetual…

Q: Which of the following statements is incorrect? Select one: a. By using the IFRS, goods shipped on…

A: Option C is correct.

Q: Purchase commitments A. Are obligations of the company to acquire certain goods at a fixed price…

A: Purchase commitment means where we agree to buy particular goods at particular price in future what…

Q: Choose only the letter of answer Which of the following would not be reported as inventory? *   a.…

A: Ans. The goods or properties which are meant for the purpose of resale and which forms the major…

Q: SCP Corporation purchased inventory on account from OBP Corporation . Which of the following…

A: Purchase of Inventory required certain steps like Analysis of Product and Services Recording the…

Q: What method does the company use to value its inventory? What other alternativesare available under…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: Which of the following should not be classified as inventory? Land acquired for resale by a real…

A: The term inventory refers to raw material used in production as well as goods produced that are…

Q: alternative methods by which entities determine their inventory

A: Inventory is the part of current assets which are sold and purchased in case of a trading entity.

Q: What is the potential impact of differences in areas such as inventory valuation of unilever united…

A:

Q: Consider each of the following independent situations. Should a company report the goods in its…

A: The purchase obligation is yet to take place, so, neither an asset nor a liability is created.…

Q: Complete an inventory valuation using both the LIFO and FIFO methods and make an educated choice…

A: FIFO Method Under FIFO method, the goods which are purchased first are sold first LIFO Method Under…

Q: Statement I: According to PFRS for SMEs, SME is as an entity that has public accountability and…

A: In the given case the small and medium enterprises entities does not have public accountability and…

Q: Explain what is meant by the cost rule or net realizable value, whichever is less, and how it is…

A: As per IAS -02 inventory should be measured on cost or Net realizable value whichever is lower.…

Q: Rustic Company has recognized an impairment loss on the value of inventory. If the inventory's value…

A: there is difference in the requirement of and recording of inventory as per ifrs and US GAAP . gaap…

Q: In the statement of financial position prepared by the company, the inventory of the branch shall be…

A: Inventory is part of current assets on the statement of financial position. The conservatism…

Q: Which of the following statements about the valuation of the inventory is correct, according to PAS…

A: Philippine Accounting Standards (PAS) 2 Inventories guides how to record or value inventories in the…

Q: The factor that determines whether goods should be included in a physical count of inventory is…

A: Physical count helps in tracking the inventory and efficiency of management control.

Q: The material sale of inventory items by a parent company to an affiliated company a. Affects…

A: Consolidated financial statements are to be prepared by the parent company, to show the combined…

Q: Which of the following goods shall be included in the inventory account of an entity? A. All goods…

A: Inventory is one of the current asset of the business, which includes inventory of raw materials,…

Q: Discuss the financial and nonfinancial implications of: Global sourcing Holding inventory

A: Global sourcing is a procurement method in which a company purchases goods and services from foreign…

Q: A method of inventory valuation wherein each particular item in the ending inventory is valued on…

A: Moving average inventory Method: Under this method, inventory is valued based on the average cost of…

Q: he amount of any write down of inventory to net realizable value and all losses of inventory shall…

A: The international accounting standard 2 (IAS 2) contains the rules related to inventories.

Q: why would a corporate entity mark up inventory when selling on an intercompany basis?

A: Answer: According to data - 1) An inter company transaction is one between a parent company and its…

Q: Under what circumstances do generally accepted accounting principles permit the use of an inventory…

A: Solution-   688-8-3DQ SA -3946 SR- 2606     Generally accepted accounting principles allow the…