Question: Why is it acceptable accounting practice to recognize a loss by writing down an item in inventory to market, but unacceptable to recognize a gain

Why is it acceptable accounting practice to recognize a loss by writing down an item in inventory to market, but unacceptable to recognize a gain by writing up an inventory item?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Principles Financial Accounting Questions!

The long-term liabilities section of CPS Transportations December 31, 2023, balance sheet included the following: a. A lease liability with 15 remaining lease payments of $10,000 each, due annually...

A random sample of size 36 is taken from a population with mean u 18 and standard deviation a 6. What are the expected value and the standard deviation for the sampling distribution of the sample...

Synthesis: Significance and Implications of Alternative Accounting Principles Learning Objectives Web Refer to Figure 1. Circle A indicates the universe of possible accounting principles. The dashed...

1. Describe the usefulness of a conceptual framework. 2. Describe the FASB's efforts to construct a conceptual framework. 3. Understand the objectives of financial reporting. 4. Identify the...

Why is it acceptable accounting practice to recognize a loss by writing down an item in inventory to market, but unacceptable to recognize a gain by writing up an inventory item? pg25

Instructions Complete Exercise 6from Chapter 6 Exercises and Problems which is attached as a PDF to this message. Presentthis exercise in Excel. SHORT ANSWER QUESTIONS, EXERCISES, AND PROBLEMS...

I don't understand ANY of this. Number 1 through five please help ? Question 1 (2 points) On July 1, 2016, Spinach Company purchased for $540,000 a warehouse building and the land on which it is...

1)Financial Reporting - The Procter & Gamble The financial statements of P&G are presented in Appendix B. The companys complete annual report, including the notes to the financial statements, can be...

Part 1: 1. What was Target's net income for the year ended January 30, 2016? 2. Did Target's net income increase or decrease from FYE 1/30/15 to FYE 1/30/16, and by how much 3. What was Target's...

Please read the article and answer about questions. Why Accounting Matters to Small Business The way many people think of it, what makes a business businesslike is its focus on making money, and in...

Hi, Please help me with responding to the discussion questions below because I'm having a hard time answering them myself. I have been up all night, and I'm unable to figure them out. I uploaded a...

A player in the Powerball lottery picks five different integers between 1 and 59, inclusive, and a sixth integer between 1 and 39, which may duplicate one of the earlier five integers. The player...

At the end of Roshek Department Stores fiscal year on December 31, 2014, these accounts appeared in its adjusted trial balance. Freight-In ................$ 5,600 Inventory ................ 40,500...

A stock has had the following year - end prices and dividends: YearPriceDividend 1 $ 6 4 . 6 3 2 7 1 . 5 0 $ . 6 6 3 7 7 . 3 0 . 7 1 4 6 3 . 5 7 . 7 7 5 7 3 . 7 1 . 8 6 6 8 2 . 7 5 . 9 3 What are the...

Prepare a comparative horizontal analysis of the change in each current asset account from Year 6 to Year 7. Express each change in dollars and the percentage each change represents. Comment on each...

Key figures for Apple and Google follow. Required 1. Compute common-size percents for each of the companies using the data provided. (Round percents to one decimal.) 2. Which company retains a higher...

Peachtree Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of May. May 1...

Compute the debt-to-equity ratio for each of the following companies. Which company appears to have a riskier financing structure? Explain. Atlanta Company Spokane Company Total liabilities .....

Could you share MATLAB code for this python example: import numpy as np # Function to compute MSE of DOA estimates def compute _ mse ( true _ doa, estimated _ doa ) : return np . mean ( ( true _ doa...

estimate a regression with stock's excess return as the dependent (Y) variable and the S&P 500 excess return as the independent (X) independent variable. compute excess return, assume risk free rate...

What happens when you enter text in a cell that already contains an entry? Group of answer choices None of the above. The cell contains both the original entry and the new entry. Excel rejects the...