Application of the lower-of-cost-or-market rule results in inconsistency because a company may value inventory at cost in one year and at market in the next year.
a. true
b. false
Answer: a. true
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Of the following six accounts, which ones have temporary balances:(1) Service Revenue(2) Dividends(3) Salaries Expense(4) Common Stock(5) Retained Earnings(6) Cash
A. (4), (5), and (6). B. (1), (3), and (5). C. (2), (4), and (5). D. (1), (2), and (3).
A cost is classified as an overhead cost if it is not directly traceable to an end product or a cost object
Indicate whether the statement is true or false
What effect (if any) would Y's unrealized profits on its sales to X have on the non-controlling interest account on the consolidated balance sheet?
X Inc. owns 80% of Y Inc. During 2018, X Inc. sold inventory to Y for $10,000. Half of this inventory remained in Y's warehouse at year end. Y Inc. sold Inventory to X Inc. for $5,000. 40% of this inventory remained in X's warehouse at year end. Both companies are subject to a tax rate of 40%. The gross profit percentage on sales is 20% for both companies. Unless otherwise stated, assume X Inc. uses the cost method to account for its Investment in Y Inc. A) There would be an increase to the non-controlling interest account for the amount of $48. B) There would be an increase to the non-controlling interest account for the amount of $30. C) There would be no effect. D) There would be a decrease to the non-controlling interest account for the amount of $48.
Which of the following statements is true about velocity?
A) The customer sets the velocity of each scrum period. B) When a project begins, the senior team members guess the velocity of the team. C) After a scrum team commits to requirements in a scrum period, it estimates the velocity it can achieve. D) A team approaches the scrum master to change the order of the requirements to which it has committed.