10:34 OWhich method of inventory valuation is not allowedwhen calculating profit for tax purposes?Select one:A. First-in-first-outO B. Last-in-first-outO C. Specific identificationD. Weighted average costII

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Description: 10:34 OWhich method of inventory valuation is not allowedwhen calculating profit for tax purposes?Select one:A. First-in-first-outO B. Last-in-first-outO C. Specific identificationD. Weighted average costII

The inventory can be valued using various methods as LIFO, FIFO , weighted average method.

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Accounting

Which method of inventory valuation is not allowed when calculating profit for tax purposes? Select one: O A. First-in-first-out B. Last-in-first-out C. Specific identification D. Weighted average cost

Which method of inventory valuation is not allowed when calculating profit for tax purposes? Select one: O A. First-in-first-out B. Last-in-first-out C. Specific identification D. Weighted average cost

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1CE: LO1 If the ending inventory is overstated by 10,000, indicate what, if anything, is incorrect about...

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25. which of the following will not be deducted to compute the consolidated cost of goods sold? A. Intercompany sale of inventory B. Amortization of undervalued inventory C. Realized profit in ending inventory – downstream D. Realized gross in beginning inventory - upstream
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12.Which of the following statements is correct regarding the direct method of accounting for any write down of inventories to its net realizable value (NRV)? a. An Allowance to Reduce Inventory to Net Realizable Value account is used to record inventory at the lower of cost and NRV. b. The beginning and ending inventories are measured at the lower of cost and NRV when determining the cost of goods sold for the period. c. The beginning and ending inventories are measured at cost when determining the cost of goods sold for the period. d. The decline in NRV of inventory is reported as an other expense while recovery in NRV of inventory is reported as an other income.
33.Which statement is NOT true about the gross profit method of inventory estimation? a. It may be used to estimate inventories for interim financial statements. b. It may be used to estimate inventories for year-end/annual financial statements c. It may be used by auditors. d. It may be used to estimate inventory pilferages.
1. Which of the following are prohibited when accounting for inventory under U.S. GAAP? a. FIFO method b. Average cost method c. Recovery of written down inventory d. LIFO method 2. Under IFRS GAAP research costs and development costs (when product technologically and economically feasible) are a. both capitalized b. both expensed c. research costs are expensed and development costs are capitalized d. research costs are capitalized and development costs are expensed
50-Under which method of inventory valuation, the average price is calculated considering the both the quantity and the price of good purchased a. Average price method b. Last In First Out (LIFO) c. Weighted average method d. First In First Out (FIFO)
5 The following are methods of how to calculate the valuation of ending inventory in accordance with GAAP. Question 5 options: a) Last-in, First-out b) First-in, First-out c) Weighted Average d) All of the above e) None of the above
68. Which of the following is reported as other comprehensive income in accordance with PAS 1, Presentation of Financial Statement? Group of answer choices sale of inventory at more than cost changes in revaluation surplus impairment loss of depreciable asset loss on sale of machinery
The cost of purchase of inventory does not include:A. Freight handling and other cost directly attributable to the acquisition of goods B. Import duties and recoverable taxes C. None of the choices D. Purchase price Which of the follow inventory method reports most closely the current cost of inventory?A. Identification B. Weighted average C. Lifo D. Fifo
How much is the cost of goods sold using the specific identification method of inventory valuation? 22,000 13,400 13,200 8,600 Answer not given
1. In the statement of financial statement restated to current cost, what amount should be reported as inventory on December 31? a. 1080000 b. 2880000 c.975000 d. 870000 2. What amount should be reported as unrealized holding gain on inventory for the current year? a. 210000 b. 135000 c. 560000 d. 0 3. In the income statement restated to current cost, what amount should be reported as cost of goods sold for the current year? a. 2320000 b. 2880000 c. 2600000 d. 2375000 4. In the income statement restated to current cost, what amount should be reported as realized holding gain from the inventory sold for the current year? a. 225000 b. 135000 c. 350000 d. 505000
48)The situation that requires a departure from the cost basis of accounting to the lower-of- cost-or-net-realizable-value basis in valuing inventory is necessitated by A)a desire for more profit. B)an increase in the value of the inventory. C)a decline in the value of the inventory. D)an increase in selling price.