MZubiri Company owned the following two assets at year end: Equipment Inventory 80,000 Current cost 100,000 Recoverable amount 95,000 90,000 The entity voluntarily disclosed information about current cost at year-end. In such a disclosure, what total amount should be reported for the equipment and inventory?

Q: Explain whether or not analytical review procedures would be sufficient for the audit of the…

A: Auditing is the examination and verification of the financial statements prepared by the entity and…

Q: Which of the following is not an asset inventory Revenue Acounts receivable Prepaid insurance

A: In accounting, an asset is a resource with economic value that an individual, corporation, or…

Q: What types of physical controls are in place to protect company assets (assets include inventory,…

A: Physical control of assets means to physically control the management of assets of the business.

Q: What is the auditor’s role with respect to the fixed asset system?

A: Definition: Fixed Assets: It refers to the long-term assets having a useful life of more than a year…

Q: Define goodwill for accounting purposes

A: When one firm is acquired by another, an intangible asset known as goodwill is transferred together…

Q: What controversy relates to the accounting for net operatingloss carryforwards?

A:

Q: What is the guiding objective is that lessees and lessors provide disclosures?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: In accordance with IAS 2 Inventories define the terms "inventories" and "net realisable value”.…

A: Inventories as the name states is one the asset to the company or any business which comes under the…

Q: Which of the following is not an asset inventory Revenue Acounts receivable Prepaid insurance

A: In accounting, an asset is a resource with economic value that an individual, corporation, or…

Q: what are used as evidence and the purpose of each type of document

A: Types of documents and purpose of the document as evidence.   1.Physical examination: A physical…

Q: Describe Expenditures Subsequent to Acquisition.

A: Definition:   Property, plant, and equipment: These assets are long-lived economic resources which…

Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the…

A: Inventory: Inventory refers to the raw materials, work-in progress, and the finished goods products…

Q: What disclosures are required For areas determined to be reportable operating segments?

A: Definition: Operating segment: Operating segments are different business verticals of a company that…

Q: Analyze some common internal controls over inventories. Explain the significant inherent risks…

A: Introduction: Depreciation is an accounting procedure that distributes the cost of an item over its…

Q: Describe required fair value disclosures.

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.