ANSWER The lower of cost or net realizable value ruleis an application of?a) Conservatism principleb) Monetary unit assumptionc) Going concern conceptd) Matching principle

Explanation of Conservatism Principle:The conservatism principle in accounting ensures that…

Answered: The lower of cost or net realizable…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1Q: What is meant by the term gross margin?

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Cost method, Market method?
In general it argued that the lower of cost of market rule is supported most closely by which of the following theoretical assumptions? a. Revenue Recognition.b. Conservatism.c. Historical Cost.d. Going Concern Assumption.
Explain different terms are used to refer to rate of return?
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Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP balance sheet using cost model c. IFRS GAAP balance sheet using revaluation model
Define the term capitalized cost?
Which of the following costs is relevant for decision-making? A. Sunk cost B. Fixed cost C. Opportunity cost D. Historical cost
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Which of the following correctly orders the investment rules of average accounting return (AR), internal rate of return (IRR), and net present value (NPV) from the most desirable to the least desirable? a. IRR, AR, NPV. b. AR, IRR, NPV. c. NPV, AR, IRR. d. AR, NPV, IRR. e. NPV, IRR, AR.
The W.A.C.C. is a : a Composite opportunity cost metric b Simple opportunity cost metric c Risk-adjusted discount rate under all circumstances d Non-stochastic discount rate under all circumstances
Define Net realizable value.

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The lower of cost or net realizable value rule is an application of? a) Conservatism principle b) Monetary unit assumption c) Going concern concept d) Matching principle