Question: Why is it allowed to value inventories using methods such as FIFO, or LIFO or weighted average? Is Lower of cost or market (LCM) an

  1. Why is it allowed to value inventories using methods such as FIFO, or LIFO or weighted average?
  2. Is Lower of cost or market (LCM) an optional or required principle to implement? Also, what is meant by "market" in that rule?
  3. Can the disposal of an asset result in a gain or loss to be recognized? Does "carrying value" and "book value" mean the same thing for fixed assets?
  4. can a company change the method of depreciation on a particular fixed asset ? Does it go forward to apply the new method against that value?
  5. can a company use percentage of completion method any time it wants to? Or do certain criteria must be met in order to use it?

Please help me with these questions listed above!

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:

Ruth Dennis, CEO of Prescott Industries, is concerned about the recent volatility in the company's operating income. She believes that since the number of units sold has been fairly stable over the...

Q:

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

Q:

The assignments are preparing those case study in journal entries and trial balance based on the attachments data and scenario. 1. Inventory valuation, Journal Entries and Trial balance 2. Property,...

Q:

I need helping inputting these entries. Can you please show calculations, I'll use it to study. it's one question with different parts ! Required information Problem 6-1A Perpetual: Alternative cost...

Q:

Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales...

Q:

Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales...

Q:

1 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail January...

Q:

Week 7 Credit Terms Discussion Board is 15 You werejust hired as the assistant to the Chief Financial Ofcer (CFO) of Saddleback Specialty Shops, an exclusive specialty chain store company that has...

Q:

this is my acct 201 assignments. thank you so much for your helping. great work and stay safe!! G newconnect.mheducation.com Required Information Problem 6-1A Perpetual: Alter... | Chegg.com...

Q:

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year...

Q:

Help Sa Required information Problem 5-1A Perpetual: Alternative cost flows LO P1 The following information applies to the questions displayed below.) Warnerwoods Company uses a perpetual inventory...

Q:

Brown Company owns 90 percent of the common stock and 60 percent of the preferred stock of White Corporation, both acquired at underlying book value on January 1, 20X1. At that date, the fair value...

Q:

What kind of impact can plea bargaining have upon the criminal justice system? What are the implications for society?

Q:

PRACTICE EXAM 1 0 . The only point of inflection on the curve representing the equation y = x 3 x 2 - 3 is at: A . x = - 2 3 B . x = - 1 3 C . x = 0 D . , x = 1 3

Q:

Three loads are suspended from cable ABCDE. Determine distance dC knowing that the maximum tension in the cable is 5 kips. 15 ft-15 ft-15 ft -15 ft E. dy de 0.4 kip 12 kips os kip

Q:

A vaulted roof truss is loaded as shown. Determine the force in members HJ, IJ, and GI. STAN

Q:

For the frame and loading shown, determine the components of the forces acting on member ABC at B and C. SON E 192 N 60 120 mm 150 mm 120 mm 150 mm-

Q:

Assuming the upward reaction of the ground on beam AB to be uniformly distributed, (a) Draw the shear and bending moment diagrams, (b) Determine the maximum absolute values of the shear and bending...

Q:

Occasionally, the A will decay by the following reaction; A0 p+ + e + ve. Which of the four forces in nature is responsible for this decay? How do you know?

Q:

The Hershey Company has an agreement with Societe des Produits Nestle SA , using which Hershey manufactures and distributes Kit Kat and Rolo confectionery products in the United States. Which type of...

Q:

Do not take criticism personally, even if it is meant to be personal.

Q:

2. To understand that as a general rule it takes about 3 minutes before the other part(s) have made up a 90% impression of you.

Q:

3. To understand that the first impression means a lot, and it takes a lot of energy to change this first impression.