provide this account questions answer Which of the following statements does notaccurately describe the lower of cost or market(LCM) valuation method?A) The journal entry to write-down inventorydecreases gross profit.B) The journal entry to write-down inventorydecreases current assets.C) The journal entry to write-down inventorydoes not affect pretax income.D) The journal entry to write-down inventoryincreases cost of goods sold.

Let's analyze the correct and incorrect statements about the Lower of Cost or Market (LCM) valuation…

Answered: Which of the following statements does…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 3EB: Considering the following information, and applying the lower-of-cost-or-market approach, what is...

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Similar questions

Considering the following information, and applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?
What does an increase in inventory imply? How would this increase in inventory be reported under the indirect method?
Identify items missing in determining cost of goods sold For (a) through (e), identify the items designated by X and Y. A. Purchases (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale X = Cost of inventory before estimated returns E. Cost of goods sold before estimated returns X = Cost of goods sold
The following information is taken from a companys records. Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?
Which of the following is not an element of the financial statements? A. future potential sales price of inventory B. assets C. liabilities D. equity
Which of these statements is false? A. If cost of goods sold is incorrect, ending inventory is usually incorrect too. B. C. D.
Which of the following is accounted for prospectively? Change in reporting entity. Change in the percentage used to determine warranty expense. Correction of an error. Changes from the weighted-average method of inventory costing to FIFO.
Under IFRS, which of the following methods is not acceptable for the valuation of inventory? a. LIFO. b. FIFO. c. Average cost. d. Specific identification
0. The inventory evaluation method which does not represent the actual ending inventory value is? a. standard cost b. first-in, first-out (FIFO) c. weighted average d. last-in, first-out (LIFO)
Which inventory cost appears as a Cost of goods sold in an Income statement under FIFO method? O a. Mix of both the oldest and the most recent cost O b. The most recent cost O C. None of the above. d. The oldest cost
The cost of purchase of inventory does not include:A. Freight handling and other cost directly attributable to the acquisition of goods B. Import duties and recoverable taxes C. None of the choices D. Purchase price Which of the follow inventory method reports most closely the current cost of inventory?A. Identification B. Weighted average C. Lifo D. Fifo
An overstatement of ending inventory results in: Select one: a. an understatement of COGS and an overstatement of net income. b. an overstatement of COGS and an overstatement of net income. c. an understatement of COGS and an understatement of net income. d. an overstatement of COGS and an understatement of net income.

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