Why is it adopted?

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: Discuss the key aspects of the 'cost model' and 'revaluation model' for non-current assets, and…

A: solution cost model                 The model where the non current assets are reported on the…

Q: What is the basis for distinguishing between operating and nonoperating items?

A:

Q: Weaknesses to a purchase order system

A: Purchase order system is a system begins with creation, processing, follow up and closure of…

Q: Explain why reclassification adjustments are necessary.

A:

Q: “The inspection point is the key to the allocation of spoilage costs.” Do you agree? Explain.

A: Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot…

Q: The relationship of theory to measurement is very important. Measurement is the assignment of…

A: Arguments for the use of historical cost:1. Objectivity: Historical cost is based on actual…

Q: describe the advantages of using a disregarded entity in assessing a choice of entity

A: The word disregarded entity means how the IRS can tax a single-member LLC. If the LLC is considered…

Q: According to COSO, one of the most important control activities is the segregation of incompatible…

A: Separation of duties refers to the means through which no single or individual person has sole…

Q: What would you consider to be Luca Pacioli's major contribution to the development of double-entry…

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

Q: Should the FASB have overturned the software revenue recognition portion within ASC 985-605? As part…

A: Financial accounting standards board (FASB): This is the organization that creates, develops, and…

Q: A critical assumption of the exploratory factor analysis (EFA) is that it is only appropriate for…

A: Definition: Exploratory Factor Analysis (EFA): It is a statistical approach to determine the…

Q: Which does not belong to the group?   Titling costs Survey costs Architectural fees Assessment…

A: There are many types of costs and fees which are incurred when an asset is purchased or amount is…

Q: e main hindrances in valuation estimates in busiiness valuation?

A: Introduction Knowing how much an asset is worth and what factors influence its value is critical for…

Q: Are there any nonfinancial advantages or disadvantages of changing to a JIT system

A: JIT is a method/management strategy that is used to reduce the cost of inventory and increase…

Q: What are the different risks associated in the accounting of inventories?

A: Answer: Inventories are the current assets of the company which are realizable within 12 months from…

Q: Consider the following information regarding the performance of a money manager in a recent month.…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Is there any evidence to suggest that the straight-line depreciation approach is more often used

A: The question tells about the straight-line depreciation approach is more often used

Q: IS a outsource?

A: Outsourcing is the process of hiring a third party to perform the company's services that are…

Q: What statement is loss of sold equipment on?

A: Loss on sale of Equipment is a non operating loss. Such losses are shown in Income Statement after…

Q: What do you mean by revaluation model? (Answer should be related to Property, Plant & Equipment…

A: Property, plant and equipment also known as PP&E are defined as the long term assets, which is…

Q: In the absence of protocols, networks would be unusable. Describe the significance of these…

A: Answer: Concept: Network can be defined as the connection of devices sharing data provided under…

Q: Which of the following is considered an ethical use of third-party data? More than one answer may be…

A: The correct answer is: (A) to collect data from individuals for CRM purpose if it is clearly…

Q: Why are companies required to use IFRS 16 and not IAS 17?

A: IAS - 17  : International Accounting Standard No.17 about the specific requirement for disclosure of…

Q: e difference between static and tactic asset allocation

A: Asset allocation is very important in the performance of fund manager and fund itself so proper…

Q: y some analysts believe that the switch to the managed float system was a wise move. Provide example…

A: Step 1   Exchange rates vary in managed float regimes, but central banks seek to influence them by…

Q: What is important for a MACRS to consider at the time of disposal?

A: MACRS stands for Modified Accelerated Cost Recovery System. These are the regulations of…

Q: Non-GAAP measures have become extremely common. TRUE or FALS

A: Non-GAAP (Generally Accepted Accounting Principles) measures are financial performance metrics that…

Q: An inaccurate estimate of asset needs can have serious consequences. Explain how?

A: Estimates of assets:  Estimate of assets is the estimated worth of assets of original worth of…

Q: BARTLEBY should not be copied. Explain simply what accounting is

A: Accounting is a comprehensive word with various sub-branches such as cost accounting, management…

Q: Does differential analysis require journal entries? Why or why not?

A: When choosing between multiple possible actions, differential analysis implies that we take into…

Q: According to IFRS, the retrospective technique should not be employed if any of the following…

A: The question explains about  According to IFRS, the retrospective technique should not be employed…

Q: Risk of material misstatements increases if

A: Please see the next step for the solution

Q: What reporting is appropriate for a loss contingency that does not qualify for recording at the…

A: Introduction: A contingency arises when a situation has to be handled in the future but whose…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.