Question

In: Finance

Which of the following statements about inventory valuation areincorrect ?AA taxpayer may write...

Which of the following statements about inventory valuation are incorrect ?
A
A taxpayer may write down inventory below market if he has
offered for sale the same merchandise at below market
value.
B
FIFO treats the inventory purchased first as the first
inventory sold.
C
If the “dollar value” LIFO method is used it is optional to
break up the inventory into “pools”.
D
LIFO treats the inventory purchased last as the first
inventory sold.

Solutions

Expert Solution

Incorrect answer is C.

If the “dollar value” LIFO method is used it is optional to
break up the inventory into “pools”.

In dollar value LIFO method, it is not optional to break up the inventory into “pools”. In this method, all the inventory is divided into pools and then the value is measured in terms of dollar value.

Rest all options are correct.

Inventory is measured at cost or market price whichever is lower.

In FIFO method,inventory purchased first is the first inventory sold.

In LIFO method, the inventory purchased last is the first inventory sold.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Which of the following statements about inventory valuation are incorrect ? A A taxpayer may write...
Which of the following statements about inventory valuation are incorrect ? A A taxpayer may write down inventory below market if he has offered for sale the same merchandise at below market value. B FIFO treats the inventory purchased first as the first inventory sold. C If the “dollar value” LIFO method is used it is optional to break up the inventory into “pools”. D LIFO treats the inventory purchased last as the first inventory sold
Which of the following statements accurately describes a net casualty loss for 2018? A taxpayer may...
Which of the following statements accurately describes a net casualty loss for 2018? A taxpayer may claim a net casualty loss for the gradual erosion of a private beach. A taxpayer may claim a net casualty loss damage to property due to the taxpayer's negligence. A net casualty loss be claimed if three loss is attributable to a federally declared disaster. A taxpayer's may claim a net casualty loss for the theft of the taxpayers boat.
Which of the following statements about the FCF valuation model are true? Check all that apply....
Which of the following statements about the FCF valuation model are true? Check all that apply. A. The model has limited applicability because it fails to adjust for a firm's riskiness—particularly that created by managers' decisions to use debt in the firm's capital structure, or decisions regarding the payment of cash dividends. B. The model is useful because it examines the relationship between a company's risk, operating profitability, and value of the firm's operations. C. A company's FCFs are a...
Which of the following statements about the FCF valuation model are true? Check all that apply....
Which of the following statements about the FCF valuation model are true? Check all that apply. A. The FCF valuation model reflects the firm's riskiness—as it affects the company's intrinsic value—via the WACC variable. B. A company's FCFs are a function of how effectively managers control the firm's costs, manage its operating and nonoperating assets, and generate sales revenues. C. The model is useful because it demonstrates the relationship between quality of the decisions that managers make and the value...
Which of the following statements is correct? a. The purpose of the valuation will influence the...
Which of the following statements is correct? a. The purpose of the valuation will influence the standard of value; the methodologies used; the level of research performed; and, possibly, the date of valuation b. The level of data available for the valuation of small and mid-sized companies tends to be much less than the amount of data available for larger public companies c. Since valuation analysts are experts, the do not understand the purpose of the assignment before the valuation...
Which of the following statements about quantity discounts is false? A) The cost-minimizing solution may or...
Which of the following statements about quantity discounts is false? A) The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. B) In inventory management, item cost becomes relevant to inventory decisions only when a quantity discount is available. C) If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule. D) The larger the annual demand, the less attractive a discount schedule will...
which of the following statements about residential rental property are TRUE? The property may be depreciated...
which of the following statements about residential rental property are TRUE? The property may be depreciated using the ___________ a. ADS for a period of 30 years only by electing to in the first year the property is placed into service b. General Depreciation System for the period of 30 years c. GDS for a period of 40 years
Which of the following statements are true? A. An increase in inventory is a use of...
Which of the following statements are true? A. An increase in inventory is a use of cash that may require a short term financing arrangement, like a bank line of credit. B. Retained earnings are not a source of funding for capital projects. C. The Additional Funds Needed (AFN) amount is estimated based on assumptions about the increase in total assets (increase in working capital and capital investment) less the forecasted increases in liabilities (vendor financing) and the amount of...
Which of the following statements is true? Note that more than one of the statements may...
Which of the following statements is true? Note that more than one of the statements may be true. a. Every relation that is in 3NF is in 2NF. b. A relation that is in 2NF, and that has a non-primary-key attribute that is functionally dependent on another non-primary-key attribute is not in 3NF. c. A relation that is in 2NF, and that has a non-primary-key attribute that is transitively functionally dependent on the primary key is not in 3NF. Which...
Which of the following statements about correlation are true?
4. Correlation basics Which of the following statements about correlation are true? Check all that apply Correlation is a numerical value between 1.1 and 2. The sign of the correlation indicates the strength or consistency of the linear relationship between two variables. A negative correlation means that two variables tend to change in opposite directions The correlation indicates the strength and the direction of the linear relationship between two variables If the correlation between two variables is 0, there is no clear linear relationship between the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT