Forgone Company had beginning inventory of $19,000, purchases were $100,000, and ending inventory had a cost of $25,000 and a market value of $20,000 . The same inventory increased $3,000 in market value in the subsequent period. Which of the following is/are not true?
a. Under U.S. GAAP, the firm would continue to record the inventory at $20,000, the lower of cost or market.
b. Under IFRS, the firm would reverse a portion of its previous impairment.
c. If Forgone Company is in an industry that frequently experience inventory price fluctuations, the firm may use an allowance account to record lower-of-cost-or-market adjustments.
d. The firm should disclose the existence of large inventory write-ups in Managements' Discussion and Analysis so that users of financial statements understand the reversal of the previous asset impairment.
e. none of the above
D
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[The following information applies to the questions displayed below.]Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank. 3) Earned $650 of revenues. 4) Paid expenses of $250. 5) Paid a $50 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)1) Issued an additional $325 of common stock. 2) Repaid $220 of its debt to the bank. 3) Earned revenues of $750. 4) Incurred expenses of $360. 5) Paid dividends of $100. What is Packard Company's net cash flow from financing activities for Year 2?
A. $220 outflow B. $5 inflow C. $320 outflow D. $225 inflow
The sale of a new security directly to an investor or a group of investors is called ________
A) arbitraging B) short selling C) a capital market transaction D) a private placement
The form of ownership that is an artificial being that has most of the rights of an individual is called a ____________________.
Fill in the blank(s) with the appropriate word(s).
________ justice refers to judgments made by employees about whether they feel fairly treated by their supervisors and other authorities in the organization.
A. Reward B. Organizational C. Interpersonal D. Distributive