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difference between current and quick ratio is that inventory is subtracted from current asset.
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- What is the purpose of disclosing the difference between the reported LIFO inventory amounts and replacement cost, assuming that replacement cost is equivalent to a FIFO basis?In accounting for by-products, when the by-products are sold for more than the estimated sales value, the difference is: a. credited to Gain or Loss on Sale of By-Product b. debited to Gain or Loss on Sale of By-Product c. immaterial, so not recorded. d. credited to By-Product Inventory.TRUE OR FALSE? Current Assets differ from Quick assets when it comes to inventory.
- Describe diff erent inventory valuation methods (cost formulas).Discuss the influence of alternative inventory cost flow assumptions and depreciation methods on turnover ratios.Which of the following is not considered in determining FIFO unit cost? A. Equivalent unit of production in ending inventory. B. Equivalent unit of production in beginning inventory. C. Units completed. D. Cost of beginning inventory.
- When valuing inventories at the lower of cost or net realisable value, which one of the following conventions is being applied? O A. Consistency OB. Prudence C. Materiality O D. Accruals C...Determine the valuation of the inventory following the measurement at Lower of Cost and Net Realizable Value.For valuation of inventory, the lower of cost or market rule may be applied to a. the total inventory b. each item or the total inventory c. each item, the total of inventory, or major categories of inventory
- Explain the inventory cost flow assumption: FIFO, LIFO, weighted average. Provide examples.Which of the following, if compared to the other methods for valuing inventory, has a material difference? A. LIFO B: FIFO C: Weighted Average D: Specific Identification.difference between inventory and profitability
