Accounting 6

Accounting 6 - PS3 38,920 33,840 33,840 Nintendo DS 10,920...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style  4/7/11 Chapter 6 Study Objective 4 ShaTasha Harris Baron Brown Samera Ibrahim 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
 4/7/11 Study Objective Four Explain the lower of cost or  market basis of accounting for  inventories.
Background image of page 2
 4/7/11 Lower-of-cost-or-market  A basis whereby inventory is stated at the lower  of either its cost or its market value as  determined by current replacement cost. Current replacement cost is the cost of  purchasing the same goods at the present time  from the usual suppliers in the usual quantities.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
 4/7/11 c oncept of conservatism the best choice among accounting alternatives is  the method that is least likely to overstate assets  and net income.
Background image of page 4
 4/7/11 Cost Market Lower of Cost  or Market XBOX 360 24,570 39,920 24,570 Wii 22,880 20,330 20,330
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: PS3 38,920 33,840 33,840 Nintendo DS 10,920 12,940 10,920 PSP 12,830 15,790 12,830 Total inventory 10,2490 4/7/11 Brief Exercise 6 For each of the following cases, state whether the statement is true for LIFO or for FIFO. Assume that prices are rising. (a) Results in a higher quality of earnings ratio (b) Results in higher phantom profits. (c) Results in higher net income. (d) Results in lower taxes. (e) Results in lower net cash provided by operating activities. 4/7/11 Brief Exercise 7 O'Connor Video Center accumulates the following cost and market data at December 31. Inventory Categories Cost Data Market Data Cameras 12,500 13,400 Camcorders 9,000 9,500 DVDs 13,000 12,800...
View Full Document

This note was uploaded on 04/06/2011 for the course ACCT 2101 taught by Professor Bhan during the Summer '07 term at UGA.

Page1 / 7

Accounting 6 - PS3 38,920 33,840 33,840 Nintendo DS 10,920...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online