When an exchange of inventory items between an enterprise and another entity is undertaken to serve the needs of the enterprise’s customers, the enterprise should record the inventory items received based on the A) Carrying amount of the inventory items relinquished. B) Fair value of the inventory items relinquished. C) Carrying amount of the inventory items received. D) Fair value of the inventory items received. After you make your choice, tell me what theory you are basing your answer on, or what part of the codification applies to the question. explain the answer why?

Q: Under what circumstances is the relative sales value an appropriate basis for determining the price…

A:

Q: An audit trail allows you to trace a source document to its final effect on the financial statements…

A: Audit trails are manual or electronic records that are chronologically defined events to provide…

Q: When following U.S. GAAP, the lower-of-cost-or-market rule for inventory requires a firm to report…

A: As per U.S. GAAP, the inventory should be reported in the balance sheet at their Cost or Market…

Q: Explain issues that analysts should consider when examining a company’s inventory disclosures and…

A: Inventory Disclosure: Inventory disclosure is useful for management to evaluate inventory…

Q: Explain the appropriate accounting treatment required when a change in inventory method is made.

A: Definition:   Change in inventory method: Change in inventory method is said to be the difference…

Q: substantive test of transactions commonly used to test the accuracy objective for acquisitions is "…

A: It's an audit procedure which examines financial statements and supporting documentation to see if…

Q: Which of the following statements best explains the relationship between the acquisition/payment…

A: Solution Explanation - Sales collection process is a series of operating events that collectively…

Q: Define the following assertions for inventory: 1) Existence 2) Completeness 3) Valuation and…

A: Audit Inventory:-It is a process of checking the inventory records in the data with a physical count…

Q: 1.If Company Abee holds consigned goods from Company XyXy, which statement is true? Group of answer…

A: Consignment is the type of business in which one person (consignor) sent goods to the other person…

Q: What method does the company use to value its inventory? What other alternativesare available under…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: Inventory valuation is the cost associated with an entity's inventory at the end of a reporting…

A: Introduction: Inventory is a type of asset that is sold during daily business operations.. Inventory…

Q: s) Which of the following is NOT a benefit of the Specific Identification method of tracking…

A: The specific identification method represents that the inventory is valued and tracked on an…

Q: Identify the document or record used in the expenditure cycle based on the description set out…

A: Document is written record for every relevant transaction.

Q: Consider the following statement: "A necessary condition to use multiples in the context of a…

A: The valuation of a company is of utmost importance from the point of view of the investors. The…

Q: Which U.S. GAAP principle or rule would apply if the net realizable value of acompany’s inventory is…

A: Net realizable value: Net realizable value is the net amount of receivables which a business expects…

Q: Under the negotiated transfer pricing approach, the minimum transfer price is established by the…

A: Transfer pricing is the process of determining prices for products, services, or intangible assets…

Q: The following information for Tuell Company is available:                              1. Assume…

A: Inventory refers to all of the items, goods, commerce, and materials held by a company for the…