Question: If a material amount of inventory has been ordered through a formal purchase contract at the balance sheet date for future delivery at firm prices,

If a material amount of inventory has been ordered through a formal purchase contract at the balance sheet date for future delivery at firm prices,

an appropriation of retained earnings is necessary.

this fact must be disclosed.

disclosure is required only if prices have since risen substantially.

disclosure is required only if prices have declined since the date of the order.

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 Accounting Questions!

Q:

Consider the following portion of data that includes information about home loan applications. Variables on each application include (1) Whether the application is conventional or subsidized by the...

Q:

21. A system of bookkeeping whereby transactions are not analyzed in terms of debits and credits. Only a cash book summarizing receipts and disbursements is used. This is known as a. Double-entry...

Q:

Circle the letter of the best answer. FCompany had January I inventory of $300,000 when it adopted dollar-va LIFO. During the year, pu Decemb . ngineyear, purchases were SIS00,000 and sales were...

Q:

SUB: INTACC/INVESTMENTS/INVENTORY 1. Dividends shall be recognized as income on which of the following dates? a.Date of Settlement b.Ex-Date c.Date of Declaration d.Date of Record 2. How is a...

Q:

If a material amount of inventory has been ordered through a formal purchase contract at the statement of financial position date, for future delivery, at firm prices. O this fact must be disclosed....

Q:

if a material amount of inventory has been ordered through a formal purchase contract at the balance sheet date for future deliver at firm prices 1 . this fact must be disclosed 2 . disclousre i...

Q:

if a material amount of inventory has been ordered through a formal noncancelable purchase contract at the balance sheet date for future delivery at firm prices, an appropriation of retained earnings...

Q:

if a material amount of inventory has been ordered through a formal noncancelable purchase contract at the balance sheet date for future delivery at firm prices, an appropriation of retained earnings...

Q:

Chapter 1 Introduction to Accounting NAME ___________________________________________________ DATE _______________________________ 1. Which of the following events would be recorded as an accounting...

Q:

please some account genius can help me with my paper from my text book material and calculate ratios for coca-cola company i have all the pages pictures posted i know its alot help will be great if...

Q:

You helped with a similar question previously and wanted to understand how you solved these, but there's no explanation? I want to understand how to do the problems correctly. So if you can include...

Q:

Operating systems typically provide each process with a virtual address space. (i) Give three advantages of this. [3 marks] (ii) In which circumstances does external fragmentation occur? How can it...

Q:

Using the graph of the function, f(x) below, determine the value of the limit as x approaches -2 from the left: lim, -2- f(x) = -2.1) (0/1) O Does not exist or DNE 01 (2-3) (1.0) 4

Q:

Conduct an excellence assessment of a well - known project ( successful or failed ) using the IPMA Project Excellence Model. Based on your assessment, what were the three most critical factors that...

Q:

Required: Assuming that CD City uses a perpetual inventory system, record the transaction. [The following information applies to the questions displayed below.] At the beginning of July, CD City has...

Q:

1:Nancy Bowie earns a weekly wage of $850. During the most recent week, she worked 46 hours. Regular Wage Rate = $ Overtime Wage Rate = $ 2:Ronald McHenry earns a biweekly wage of $2,400. During the...

Q:

a. Suppose it is start of January 202X. A cocoa farmer would be looking to sell 45,000 tonnes of cocoa in early March. Consider the following contracts and quotes: Required (show all step-by-step...

Q:

Jahi Jani is a 43-year-old chauffeur who is employed by Joyous Journeys Pty Ltd in Melbourne. Jahi engages your services for the preparation of his companys 2019/20 tax return. On 4 September 2020...

Q:

The value for " z " used in quality control charts is based on the degree of confidence you want to have in the resulting UCL and LCL values. True False Previous

Q:

Relate the major historical events leading up to the establishment of HRD as a profession

Q:

Distinguish between HRD and human resource management (HRM)

Q:

Define what the four-fifths rule is.