menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingCornerstones of Financial Accounting4th Edition

close solutoin list
Chapter 6, Problem 11MCQ
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
Problem 1DQ
Problem 2DQ
Problem 3DQ
Problem 4DQ
Problem 5DQ
Problem 6DQ
Problem 7DQ
Problem 8DQ
Problem 9DQ
Problem 10DQ
Problem 11DQ
Problem 12DQ
Problem 13DQ
Problem 14DQ
Problem 15DQ
Problem 16DQ
Problem 17DQ
Problem 18DQ
Problem 19DQ
Problem 20DQ
Problem 21DQ
Problem 22DQ
Problem 23DQ
Problem 1MCQ
Problem 2MCQ
Problem 3MCQ
Problem 4MCQ
Problem 5MCQ
Problem 6MCQ
Problem 7MCQ
Problem 8MCQ
Problem 9MCQ
Problem 10MCQ
Problem 11MCQ
Problem 12MCQ
Problem 13MCQ
Problem 14MCQ
Problem 15MCQ
Problem 16MCQ
Problem 17MCQ
Problem 18MCQ
Problem 19CE
Problem 20CE
Problem 21CE
Problem 22CE
Problem 23CE
Problem 24CE
Problem 25CE
Problem 26CE
Problem 27CE
Problem 28CE
Problem 29CE
Problem 30CE
Problem 31CE
Problem 32CE
Problem 33BE
Problem 34BE
Problem 35BE
Problem 36BE
Problem 37BE
Problem 38BE
Problem 39BE
Problem 40BE
Problem 41BE
Problem 42E
Problem 43E
Problem 44E
Problem 45E
Problem 46E
Problem 47E
Problem 48E
Problem 49E
Problem 50E
Problem 51E
Problem 52E
Problem 53E
Problem 54E
Problem 55E
Problem 56E
Problem 57E
Problem 58E
Problem 59E
Problem 60E
Problem 61E
Problem 62E
Problem 63E
Problem 64E
Problem 65APSA
Problem 66APSA
Problem 67APSA
Problem 68APSA
Problem 69APSA
Problem 70APSA
Problem 71APSA
Problem 72APSA
Problem 73APSA
Problem 65BPSB
Problem 66BPSB
Problem 67BPSB
Problem 68BPSB
Problem 69BPSB
Problem 70BPSB
Problem 71BPSB
Problem 72BPSB
Problem 73BPSB
Problem 74.1C
Problem 74.2C
Problem 75.1C
Problem 75.2C
Problem 76C
Problem 77.1C
Problem 77.2C
Problem 78.1C
Problem 78.2C
Problem 79.1C
Problem 79.2C
Problem 79.3C
Problem 80.1C
Problem 80.2C
Problem 80.3C
Problem 80.4C
Problem 80.5C
Problem 80.6C
Problem 81.1C
Problem 81.2C
Problem 81.3C
Problem 81.4C
Problem 81.5C
Problem 82.1C
Problem 82.2C
Problem 82.3C
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
1 views

Which of the following statements regarding the lower of cost or market (LCM) rule is true?

a. The LCM rule is an application of the historical cost principle.

b. When the net realizable value of inventory drops below the historical cost of inventory, an adjustment is made to decrease inventory to its market value and decrease income.

c. If a company uses the LCM rule, there is no need to use a cost flow assumption such as FIFO, LIFO, or average cost.

d. When the net realizable value of inventory is above the historical cost of inventory, an adjustment is made to increase inventory to its market value and increase income.

To determine

Concept introduction:

Lower of Cost or market value method:

Lower of Cost or market value method is applied to find the cost of ending inventory to be recorded in the book of account. According to this method the cost is compared with the market value and inventory is recorded with the lower amount of cost or market value.

To choose:

The true statement regarding the lower of cost or market (LCM) rule.

Explanation

Explanation for Correct answer:

b. When the net realizable value of inventory drops below its cost, there is an adjustment is made in the inventory cost to bring it down to the net realizable value.

Hence this is the correct option.

Explanation for incorrect answers:

a. LCM rule does not follow the historical cost principle...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 6,
Problem 10MCQ
Chapter 6,
Problem 12MCQ
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 6 Solutions

Show all chapter solutions add
Ch-6 P-1DQCh-6 P-2DQCh-6 P-3DQCh-6 P-4DQCh-6 P-5DQCh-6 P-6DQCh-6 P-7DQCh-6 P-8DQCh-6 P-9DQCh-6 P-10DQ
Ch-6 P-11DQCh-6 P-12DQCh-6 P-13DQCh-6 P-14DQCh-6 P-15DQCh-6 P-16DQCh-6 P-17DQCh-6 P-18DQCh-6 P-19DQCh-6 P-20DQCh-6 P-21DQCh-6 P-22DQCh-6 P-23DQCh-6 P-1MCQCh-6 P-2MCQCh-6 P-3MCQCh-6 P-4MCQCh-6 P-5MCQCh-6 P-6MCQCh-6 P-7MCQCh-6 P-8MCQCh-6 P-9MCQCh-6 P-10MCQCh-6 P-11MCQCh-6 P-12MCQCh-6 P-13MCQCh-6 P-14MCQCh-6 P-15MCQCh-6 P-16MCQCh-6 P-17MCQCh-6 P-18MCQCh-6 P-19CECh-6 P-20CECh-6 P-21CECh-6 P-22CECh-6 P-23CECh-6 P-24CECh-6 P-25CECh-6 P-26CECh-6 P-27CECh-6 P-28CECh-6 P-29CECh-6 P-30CECh-6 P-31CECh-6 P-32CECh-6 P-33BECh-6 P-34BECh-6 P-35BECh-6 P-36BECh-6 P-37BECh-6 P-38BECh-6 P-39BECh-6 P-40BECh-6 P-41BECh-6 P-42ECh-6 P-43ECh-6 P-44ECh-6 P-45ECh-6 P-46ECh-6 P-47ECh-6 P-48ECh-6 P-49ECh-6 P-50ECh-6 P-51ECh-6 P-52ECh-6 P-53ECh-6 P-54ECh-6 P-55ECh-6 P-56ECh-6 P-57ECh-6 P-58ECh-6 P-59ECh-6 P-60ECh-6 P-61ECh-6 P-62ECh-6 P-63ECh-6 P-64ECh-6 P-65APSACh-6 P-66APSACh-6 P-67APSACh-6 P-68APSACh-6 P-69APSACh-6 P-70APSACh-6 P-71APSACh-6 P-72APSACh-6 P-73APSACh-6 P-65BPSBCh-6 P-66BPSBCh-6 P-67BPSBCh-6 P-68BPSBCh-6 P-69BPSBCh-6 P-70BPSBCh-6 P-71BPSBCh-6 P-72BPSBCh-6 P-73BPSBCh-6 P-74.1CCh-6 P-74.2CCh-6 P-75.1CCh-6 P-75.2CCh-6 P-76CCh-6 P-77.1CCh-6 P-77.2CCh-6 P-78.1CCh-6 P-78.2CCh-6 P-79.1CCh-6 P-79.2CCh-6 P-79.3CCh-6 P-80.1CCh-6 P-80.2CCh-6 P-80.3CCh-6 P-80.4CCh-6 P-80.5CCh-6 P-80.6CCh-6 P-81.1CCh-6 P-81.2CCh-6 P-81.3CCh-6 P-81.4CCh-6 P-81.5CCh-6 P-82.1CCh-6 P-82.2CCh-6 P-82.3C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Bullwinkle Co. acquired an adjacent vacant lot with the hope of selling it in the future at a gain. The lot is ...

Accounting

Why is it important to periodically take a physical inventory when using a perpetual inventory system?

Financial & Managerial Accounting

Analyze Apache Corporation Apache Corporation (APA) is an independent energy company that explores, develops, a...

Corporate Financial Accounting

What are the four major categories of pervasive controls? Why would the PCAOB refer to these controls as entity...

Accounting Information Systems

Governments may intervene in a market economy in order to a. protect property rights. b. correct a market failu...

Principles of Economics (MindTap Course List)

The three measures of center introduced in this chapter are the mean, median, and trimmed mean. Two additional ...

Probability and Statistics for Engineering and the Sciences

CAPM AND REQUIRED RETURN Calculate the required rate of return for Mudd Enterprises assuming that investors exp...

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

(Shifting Demand) Using demand and supply curves, show the effect of each of the following on the market for ci...

ECON MICRO

FREE CASH FLOW Arlington Corporations financial statements (dollars and shares are in millions) are provided he...

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

Goodwill Message: Extending Sympathy to a Spouse. YOUR TASK. Imagine that the spouse of a coworker recently die...

Essentials of Business Communication (MindTap Course List)

Suppose Americans decide to save more of their in-comes. If banks lend this extra saving to businesses, which u...

Principles of Microeconomics (MindTap Course List)

CASH CONVERSION CYCLE Chastain Corporation is trying to determine the effect of its inventory turnover ratio an...

Fundamentals of Financial Management (MindTap Course List)

Water is necessary for life. Is the marginal benefit of a glass of water large or small?

Brief Principles of Macroeconomics (MindTap Course List)

(Law of Diminishing Marginal Utility) Complete each of the following sentences: a. Your tastes determine the __...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

What are the disadvantages of a partnership?

Foundations of Business (MindTap Course List)

A survey of 131 investment managers in Barrons Big Money poll revealed the following: 43% of managers classifie...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Define real GDP and nominal GDP. Which is a better measure of economic well-being? Why?

Principles of Macroeconomics (MindTap Course List)

Present values Alex Kelton recently won the jackpot in the Colorado lottery while he was visiting his parents. ...

Financial And Managerial Accounting

Indicate the changes (using the shorthand representation) that you would need to make to the original TAL Distr...

A Guide to SQL

Discuss the use of multimedia in a business setting.

Fundamentals of Information Systems

Write the business rules that are reflected in the ERD shown in Figure P2.17. FIGURE P2.17 THE CROWS FOOT ERD F...

Database Systems: Design, Implementation, & Management

Search the Web for The Official Phreakers Manual. What information in this manual might help a security adminis...

Principles of Information Security (MindTap Course List)

What are the basic characteristics of a NoSQL database?

Database Systems: Design, Implementation, & Management

How is data different from information? How is information different from knowledge?

Principles of Information Systems (MindTap Course List)

Representing the organization’s knowledge management vision is a key role for the ____________ of an organizati...

Fundamentals of Information Systems

Give examples of products and services that make our everyday lives better.

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

Find expressions for shear force V and moment M at v = L/2 of beam AB in structure (a). Express V and M in term...

Mechanics of Materials (MindTap Course List)

Explain how to use a micrometer to measure cam lobe wear.

Automotive Technology: A Systems Approach (MindTap Course List)

In concrete work, Fuller and Thompson (1907) suggested that a dense packing of grains can be achieved if the pe...

Fundamentals of Geotechnical Engineering (MindTap Course List)

Why must a band saw blade be annealed after welding?

Precision Machining Technology (MindTap Course List)

What other fields besides investing might benefit from the use of a robo-advice system?

Principles of Information Systems (MindTap Course List)

Which international InfoSec standards have evolved from the BS7799 model? What do they include?

Management Of Information Security

Some experts believe that the growth ecommerce will cause states and local government to lose tax revenue, unle...

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

Determine the resultant of the force system acting on the beam.

International Edition---engineering Mechanics: Statics, 4th Edition

Several systems are described below. For each system, go through each of the following adjectives, and determin...

Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)

A main service panel is located in a dark corner of a basement, far from the basement light. In your opinion, d...

EBK ELECTRICAL WIRING RESIDENTIAL

The grain-size distribution curves for three different sands (A, B, and C) are shown in Figure 2.34. Figure 2.3...

Principles of Geotechnical Engineering (MindTap Course List)

An industry operates a landfill into which an organic waste having the formula C4H8O4 decays anaerobically. a. ...

Solid Waste Engineering

Do all contactors remain energized when the motor is in high speed?

Electric Motor Control

The member shown in Figure P6.6-8 is braced against sidesway. Bending is about the major axis. Does this member...

Steel Design (Activate Learning with these NEW titles from Engineering!)

True or False? Second-generation air bags may con tain two explosive charges.

Automotive Technology

Keywords for Job Search After taking your third computer class, you realize that you would like to train people...

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)

FTP sometimes uses a random port for data transfer, but an FTP server always, unless programmed otherwise, list...

Network+ Guide to Networks (MindTap Course List)

Draw the influence lines for the vertical reactions at supports A and E and the reaction moment at support E of...

Structural Analysis

bartleby
© bartleby 2019