100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Intermediate Accounting Ch. 9 15th Edition Exam with 100% Solved $9.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Intermediate Accounting
  4.  
  5. Intermediate Accounting

Exam (elaborations)

Intermediate Accounting Ch. 9 15th Edition Exam with 100% Solved
 0 purchase
  • Course
  • Intermediate Accounting
  • Institution
  • Intermediate Accounting

Intermediate Accounting Ch. 9 15th Edition Exam with 100% Solved The method of recording inventory at market that substitutes the market value for cost and reports the loss as a part of cost of goods sold is the: - allowance method. The primary basis of accounting for inventories is cost. A d...

[Show more]

Preview 2 out of 12  pages

Document information

  • September 3, 2024
  • 12
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • Intermediate Accounting
  • Intermediate Accounting

Seller

avatar-seller
JOSHCLAY

Reviews received

Content preview

Intermediate Accounting Ch. 9 15th

Edition Exam with 100% Solved


The method of recording inventory at market that substitutes the market

value for cost and reports the loss as a part of cost of goods sold is the: -

✔✔ allowance method.

The primary basis of accounting for inventories is cost. A departure from

the cost basis of pricing the inventory is required where there is evidence

that when the goods are sold in the ordinary course of business their -✔✔

future utility will be less than their cost.

In applying Lower-of-Cost-or-Market, the designated market value is -✔✔

the middle value of replacement cost, net realizable value and net

realizable value less a normal profit margin.

Net realizable value is defined as estimated selling price less purchase

price. -✔✔ False

The direct method of recording inventory at market under the lower of cost

or market rule establishes a separate contra asset account and a loss

account to record the write-off. -✔✔ False

, In applying the lower of cost or market rule, the floor is defined as: -✔✔ net

realizable value less a normal profit margin.

In the lower of cost or market rule, net realizable value is referred to as the:

-✔✔ ceiling

When the direct method is used adjust cost to "market", what account is

debited? -✔✔ Cost of Goods Sold.

Inventory may be recorded at net realizable value if -✔✔ there are no

significant costs of disposal, the inventory consists of precious metals or

agricultural products, and there is a controlled market with a quoted price.

The LIFO retail method assumes that markups and markdowns apply to

both beginning inventory and goods purchased during the period. -✔✔

False

The relative sales value method is used throughout the: -✔✔ petroleum

industry.

If a material amount of inventory has been ordered through a formal

purchase contract at the balance sheet date for future delivery at firm

prices, -✔✔ this fact must be disclosed.

The percentage markup on cost can be computed by dividing gross profit

by 100%: -✔✔ minus gross profit.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller JOSHCLAY. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$9.99
  • (0)
Add to cart
Added