U.S. GAAP specifies that, in the context of inventories, market means
a. replacement cost, only.
b. net realizable value, only.
c. replacement cost, except that market may not exceed net realizable value and may not be less than net realizable value reduced by a normal profit margin.
d. replacement cost, except that market may not exceed net realizable value and may not be less than present value of future cash flows.
e. replacement cost, except that market may not exceed net realizable value and may not be less than the total amount of undiscounted future cash flows.
C
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Focus groups can be misused and abused by considering the results as conclusive
Indicate whether the statement is true or false
On September 12, Ryan Company sold merchandise in the amount of $8600 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5400. Ryan uses the periodic inventory system and the net method of accounting for sales. On September 14, Johnson returns some of the merchandise. The selling price of the merchandise is $780 and the cost of the merchandise returned is $490. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Ryan makes on September 18 is:
A.
| Cash | 8428? | |
| Accounts receivable | 8428? |
B.
| Cash | 8600? | |
| Accounts receivable | 8600? |
C.
| Cash | 7664? | |
| Accounts receivable | 7664? |
D.
| Cash | 7664? | |
| Sales discounts | 156? | |
| Accounts receivable | 7820? |
E.
| Cash | 8428? | |
| Sales discounts | 172? | |
| Accounts receivable | 8600? |
Which types of financial policies does Zietlow argue are doomed to fail?
A. internal B. external C. restrictive D. prescriptive
Which of the following is true of enforcing a contract?
A) A contract is only considered valid if it is enforceable by both parties. B) In an unenforceable contract, at least one party has the option to void his or her contractual obligations. C) Void contracts are enforceable in cases involving mutual mistakes. D) Parties may voluntarily perform a contract that is unenforceable.