Which U.S. GAAP principle or rule would apply if the net realizable value of acompany’s inventory is below its original cost?a. Lower-of-cost-or-market ruleb. Consistency principlec. Disclosure principled. Historical cost principle

Q: What factors might call for inventory valuation at salesprices (net realizable value or market…

A: Inventory: Inventory refers to the stock of a business which is traded to earn profits.

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

A: Relative sales value is an appropriate basis for pricing inventory when a group of changing units is…

Q: Which of the following should not be taken into account when determining the cost of inventory? a.…

A: Solution:- The following should not be taken into account when determining the cost of inventory as…

Q: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income? a.…

A: Under the FIFO and LIFO, the obtained cost of goods sold can be higher or lower than the actual…

Q: Identify any differences between U.S. GAAP and IFRS when applying the lower of cost and net…

A: Unlike GAAP, IFRS allows the reversal of the inventory write-down, if found no longer appropriate.

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: Which of the following is the correct calculation of rate of mark-up on selling price? a.…

A: Rate of Markup on Selling Price:-Sales price minus the unit cost that divides that number of unit…

Q: The Alhambra Company had these accounts at the time it was acquired by Kingdom Co.: Cash P 108,000…

A: Acquisition refers to the process of acquiring the assets and liabilities of one company by the…

Q: Explain the lower of cost or market rule for inventory valuation and explain why it is GAAP.

A: Lower of cost or market value for inventory valuation is just a mixture of many accounting…

Q: the lower cost or market is a method of inventory valuation true or false?

A: Inventory valuation is the accounting process in which the monetary value assigned to the unsold…

Q: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income?…

A: When a corporation values its inventory using FIFO, it reports reduced COGS, which boosts its gross…

Q: Under IFRS, which of the following methods is not acceptable for the valuation of inventory? a.…

A:

Q: The application of the lower of cost or market rule to inventory valuation is an example of a. the…

A: The valuation of inventory is done at lower of cost or net realisable value as per relevant…

Q: Which inventory cost flow assumption does IFRS not allow? a. Specific identification. b. FIFO. c.…

A: Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What is the purpose of disclosing the difference between the reported LIFO inventory amounts and…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Q: What is the measurement value of inventory? Select one: a. Expected Value b. Fair Value c.…

A: Inventory are the goods which the businesses held for the sale.

Q: Discuss the primary difference between U.S. GAAP and IFRS with respect to determining the cost of…

A:

Q: The following information is taken from a company's records. Cost Market value per Unit per Unit…

A: As per IAS 2 inventory is to be measured at cost or Net realizable value whichever is lower. Here…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to the lower of cost or net…

A:

Q: What inventory costing methods are allowed under IFRS? How does this differ from the treatment under…

A: Inventory valuation refers to the valuation of closing stock in hand which is reflected in the…

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.