Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits. To determine the proper accounting treatment of inventory.

Question

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Answer 1

Question

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

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Answer 2

Question

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

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Answer 3

Question

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

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Answer 4

Question

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

Answer 6

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.

Conclusion

Hence, the proper accounting treatment of inventory is explained.

Answer 7

Chapter 9, Problem 1Q

To determine

Inventory: It refers to the stock or goods of a business which is traded by the company to earn profits.

To determine the proper accounting treatment of inventory.

Answer 8

Expert Solution & Answer

Explanation of Solution

The evidence of disposal of the usefulness of inventory goods in the ordinary course of business is being lesser than cost. In the current period, the difference in the costs will be treated as a loss.

In the financial statements of the company, the inventory will be stated as the “net realizable value.”

The inventory disposal in the ordinary course of business at a cost lesser than the difference between the disposal amount and the cost is considered as loss in the current period.