LCNRV: LCNRV refers to lower-of-cost-and-net realizable value. Generally, inventories are recorded at cost of the inventory. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the inventory can be mentioned as the “net realizable value”. (a) To determine the purpose of LCNRV method.

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Chapter 9, Problem 1CA

To determine

LCNRV: LCNRV refers to lower-of-cost-and-net realizable value. Generally, inventories are recorded at cost of the inventory. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the inventory can be mentioned as the “net realizable value”.

(a)

To determine the purpose of LCNRV method.

To determine

(b)

To determine the meaning of “net realizable value.”

To determine

(c)

To determine the application of LCNRV method to the inventories.

To determine

(d)

To determine the potential disadvantages of LCNRV method.

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Question

Chapter 9, Problem 1CA

To determine

LCNRV: LCNRV refers to lower-of-cost-and-net realizable value. Generally, inventories are recorded at cost of the inventory. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the inventory can be mentioned as the “net realizable value”.

(a)

To determine the purpose of LCNRV method.

To determine

(b)

To determine the meaning of “net realizable value.”

To determine

(c)

To determine the application of LCNRV method to the inventories.

To determine

(d)

To determine the potential disadvantages of LCNRV method.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 1CA

To determine

LCNRV: LCNRV refers to lower-of-cost-and-net realizable value. Generally, inventories are recorded at cost of the inventory. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the inventory can be mentioned as the “net realizable value”.

(a)

To determine the purpose of LCNRV method.

To determine

(b)

To determine the meaning of “net realizable value.”

To determine

(c)

To determine the application of LCNRV method to the inventories.

To determine

(d)

To determine the potential disadvantages of LCNRV method.

Expert Solution & Answer

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Answer 4

Question

Chapter 9, Problem 1CA

To determine

LCNRV: LCNRV refers to lower-of-cost-and-net realizable value. Generally, inventories are recorded at cost of the inventory. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the inventory can be mentioned as the “net realizable value”.

(a)

To determine the purpose of LCNRV method.

To determine

(b)

To determine the meaning of “net realizable value.”

To determine

(c)

To determine the application of LCNRV method to the inventories.

To determine

(d)

To determine the potential disadvantages of LCNRV method.

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Check out a sample textbook solution

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Answer 5

Chapter 9, Problem 1CA

To determine

LCNRV: LCNRV refers to lower-of-cost-and-net realizable value. Generally, inventories are recorded at cost of the inventory. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the inventory can be mentioned as the “net realizable value”.

(a)

To determine the purpose of LCNRV method.

To determine

(b)

To determine the meaning of “net realizable value.”

To determine

(c)

To determine the application of LCNRV method to the inventories.

To determine

(d)

To determine the potential disadvantages of LCNRV method.

Answer 6

Chapter 9, Problem 1CA

To determine

LCNRV: LCNRV refers to lower-of-cost-and-net realizable value. Generally, inventories are recorded at cost of the inventory. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the inventory can be mentioned as the “net realizable value”.

(a)

To determine the purpose of LCNRV method.

Answer 7

Chapter 9, Problem 1CA

To determine

LCNRV: LCNRV refers to lower-of-cost-and-net realizable value. Generally, inventories are recorded at cost of the inventory. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the inventory can be mentioned as the “net realizable value”.

(a)

To determine the purpose of LCNRV method.

Answer 8

To determine

(b)

To determine the meaning of “net realizable value.”

Answer 9

To determine

(b)

To determine the meaning of “net realizable value.”

Answer 10

To determine

(c)

To determine the application of LCNRV method to the inventories.

Answer 11

To determine

(c)

To determine the application of LCNRV method to the inventories.

Answer 12

To determine

(d)

To determine the potential disadvantages of LCNRV method.

Answer 13

To determine

(d)

To determine the potential disadvantages of LCNRV method.

Answer 14

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Answer 15

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Answer 17

Ch. 9 - Prob. 1Q Ch. 9 - Prob. 2Q Ch. 9 - 3. What approaches may be employed in applying...Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - Prob. 10Q

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(b)

To determine the meaning of “net realizable value.”

(c)

To determine the application of LCNRV method to the inventories.

(d)

To determine the potential disadvantages of LCNRV method.

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Chapter 9 Solutions

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(b) To determine the meaning of “net realizable value.”

(c) To determine the application of LCNRV method to the inventories.

(d) To determine the potential disadvantages of LCNRV method.

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Chapter 9 Solutions

(b)

To determine the meaning of “net realizable value.”

(c)

To determine the application of LCNRV method to the inventories.

(d)

To determine the potential disadvantages of LCNRV method.