5 Exercise 3-10 (Static) Financial statement disclosures [LO3-4]The following are typical disclosures that would appear in the notes accompanying financial statements. For each of the items listed.indicate where the disclosure would likely appear-either in (A) the significant accounting policies note or (B) a separate note.Note: The first Item is shown as an example.1. Inventory costing method2. Information on related party transactions3. Composition of property, plant, and equipment4. Depreciation method5. Subsequent event information6. Measurement basis for certain financial instruments7. Important merger occurring after year-end8. Composition of receivablesA

Financial statement disclosures provide essential details beyond the numerical data presented in…

1. Inventory costing method 2. Information on related party transactions 3. Composition of property, plant, and equipment 4. Depreciation method 5. Subsequent event information 6. Measurement basis for certain financial instruments 7. Important merger occurring after year-end 8. Composition of receivables A

1. Inventory costing method 2. Information on related party transactions 3. Composition of property, plant, and equipment 4. Depreciation method 5. Subsequent event information 6. Measurement basis for certain financial instruments 7. Important merger occurring after year-end 8. Composition of receivables A

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter2: The Basics Of Record Keeping And Financial Statement Preparation: Balance Sheet

Section: Chapter Questions

Problem 8E

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erms and phrases relating to concepts discussed in this chapter along with descriptions of those terms and phrases follow. Match each term, 1 through 15, with the best description a through o. Key Inventory Terms and Phrases Key Inventory Terms and Phrases Description of Terms and Phrases Answerabcdefghijklmno 1. Net realizable value a. Requires retroactive restatement of financial statements Answerabcdefghijklmno 2. Lower-of-cost-or-market b. Method for valuing inventory applying to LIFO and retail methods Answerabcdefghijklmno 3. Allowance to reduce inventory to net realizable value c. Cancellation of additional markup Answerabcdefghijklmno 4. Gross profit method d. Inventory estimation that is not acceptable under GAAP Answerabcdefghijklmno 5. Estimated loss on purchase commitment e. Method that approximates lower-of-cost-or-market Answerabcdefghijklmno 6. Change in inventory method from average to FIFO f. Not usually practical to retroactively restate or adjust…
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