ACDC Pty Ltd included inventory that had cost $55,000 at its market value of $75,000 in the statement of financial position for the year ended 30 June 2019. Which accounting principle has been violated?

Q: Both IFRS and U.S. GAAP apply the lower of cost or market method for reporting inventory values. If…

A: LCM Method: Termed as Lower of Cost or Market, this method explains that the inventory of a company…

Q: The following balances were available at 31st November 2021 for Salah Ltd. Capital £95,000;…

A: To prepare the statement of financial position extract at 31st November 2021, we need to first…

Q: 12/31/26 Retained Earnings is in error by:

A: The errors which are done by the company over the temporary accounts like over or under recording of…

Q: How should a company handle a LIFO liquidation in an interim period when the liquidated inven­tory…

A: Last-In-First-Out Method:   It is an inventory valuation method adopted by manufacturing companies…

Q: Langley Company received merchandise on December 31, 2016. Langley failed to record the purchase on…

A: If the purchases entry is not recorded, the expense wouldn't have been recorded and hence the…

Q: Required (i) Discuss whether the entries suggested by Li Chen are correct, explaining on a…

A: Consolidated financial statement represents the financial details of parent company and subsidiary…

Q: For each of the following items, indicate the type of accounting change. (a1) (a) Change from…

A: The accounting change is generally a change in accounting principle, change in accounting estimate,…

Q: Carrying inventory at a value above its historical cost would most likely be permitted if:A. the…

A: IFRS (International Financial Reporting Standard)allow the inventories of manufacturers and…

Q: The errors below were noted after the books of CalMart Corporation were audited at the close of 2021…

A: The adjustment entries are to be recorded to adjust the net income or losses of the future.

Q: For each of the following items, indicate the type of accounting change. (a1) (a) (b) (c) (d) (e)…

A: The objective of the question is to identify the type of accounting change for each of the given…

Q: Carey Company adheres to U.S. GAAP, whereas Jonathan Company adheres to IFRS. Itis least likely…

A: Option B is correct.

Q: The errors below were noted after the books of CalMart Corporation were audited at the close of 2021…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Indicate how the following items are recorded in the accounting records in the current year of…

A: The adjustments to be made to the accounting records of Coronet CO for the current year would be…

Q: SABC’s assets and liabilities were as follows: Cash and Receivables P75,000; Merchandise Inventory…

A: The merger and acquisition is a process of acquiring one entity by another entity. In this process…

Q: B Limited sells inventory to its parent, W Limited at cost price plus 125% mark-up.  • Closing…

A: The term "parent company" indicates a corporation that has a significant ownership stake in another…

Q: Before 2020, KnowieNowl Company used the cash basis of accounting. For the year ended December 31,…

A: Cash Basis of accounting- Under this income and expense recorded in the books as and when the actual…

Q: The New Zealand Equivalent to the IASB Conceptual Framework for Financial Reporting (2018) states…

A: As per the  Valuation of Inventory the Inventory will be valued at lower of two:-  (i)  Cost; or…

Q: quity h other comprehensive income, w at fair value of P550,000. At Dece lue of the securities was…

A: Income statement termed as IS which is one of the financial statements of the company and this…

Q: tories in the records of W Limited on 30 June 2022 amount to R157 500. • Net realisable value of…

A: Journal entries refer to the concept of properly noting all the day-to-day transactions of a company…

Q: When a company changes its inventory method to LIFO, an exception is made for the way accounting…

A: Explain the difference in the accounting treatment of a change to the LIFO inventory method from…

Q: (a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd,…

A: Entry will be- 1. Sales a/c                              Dr.         $15,000               Cost of…

Q: How should a company handle a LIFO liquidation in an interim period when the liquidated inventory is…

A: Last-In-First-Out Method: It is an inventory valuation method adopted by manufacturing companies…

Q: Camille, Inc., sold $120,000 in inventory to Eckerle Company during 2020 for $200,000. Eckerle…

A: The equity method is used to record the profit earned through its investment in another business.…

Q: For each of the following items, indicate the type of accounting change. (a1) (a) (b) (c) (d) (e)…

A: The accounting change is generally a change in accounting principle, change in accounting estimate,…

Q: Everest acquired assets and liabilities of Cola for Cola 's book value at the balance sheet date, At…

A: In the books of acquirer , assets acquired will be recorded at fair value . In the balance sheet ,…

Q: If reported sales for 2017 erroneously include sales that occurred in 2018, the assertion violated…

A: 1. Occurrence represents that the financial transaction that is required to be reported would be…

Q: Which of these situations would require auditors to append an emphasis-of-matter paragraph about…

A: Answer:   Option d.

Q: The errors below were noted after the books of CalMart Corporation were audited at the close of 2021…

A: We will analyse each transaction's effect on income, assets, liabilities, retained…

Q: 2. Gabriela Company’s auditor discovered that the company inadvertently overstated ending Inventory…

A: Inventory means the goods in which the business deals. Inventory should be valued correctly  as it…