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Valuation of inventory required
Question 1: the idea that inventory should be included in financial statements at the lower of historical cost and net realizable value follows the prudence convention but not the consistency convention . Do you agree with the statement ?
Question 2: explain with reasons , whether you think this idea that inventories should be included in accounts at the lower of historical cost and net realizable value , is a useful one . refer to at least two classes of user of financial accounting reports in your answer
Canadian Bacon Inc, Caluclate the firm's the net-working capital - to-sales ratio. Round the answers to two decimal places in percentage form.
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Service and installation work were completed on a customer's jet ski personal watercraft and the customer paid in cash for the work completed. The sales invoice lists 156 for 2.4 hours of labor, 421.40 for accessories, and 8% sales tax on the total.
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Evaluate the inventory section of two companies using basic comparative analysis and to interpret data to gain insight about the company's inventory management.
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Legend Service Center just purchased an automobile hoist for $32,500. The hoist has an 8-year life and an estimated salvage value of $3,470. Installation costs and freight charges were $3,580 and $840, respectively. Compute the cash payback period fo..
Employee wages are paid twice a month, on the 22nd for the wages earned from the 1st through the 15th, and on the 7th o fthe following month for wages earned from the 16th through the end of the month. Wages earned from December 16 through December 3..
On September 12, Vander Company, Inc. sold merchandise in the amount of $2,500 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $1,725. Vander uses the periodic inventory system. On September 14, Jepson returns some o..
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