Illustration 8-4 Page 384
Example of Over/Short
Inventory Valuation Example:
Must determine the following:
Inventory is buyers when received except:
What happens when Inventory is misstated?
Example of Understates its ending inventory: Page 390
Multiple Choice, Question 21
may be exchanged for equity securities.
are usually secured by a first or second mortgage.
have priority over other indebtedness.
pay interest only in the event earnings are sufficient to cov
Week 4 Chapter 11
1. Activity Method
2. Straight-Line Method
3. Decreasing-Charge Method
Example of Sum-of-the-Years-Digits.
Decreasing-Charge Methods / Declining-Balance Method
Example of Impairment:
MACRS VS. Depreciation Method
Work in process inventory included on the balance sheet
Period Cost example of officers salaries or other administrative expense. Not included in inventory cost,
matched w/ revenue.
Product Cost attach to the inventory and are direc
Example: How Lower of Cost works
Note: Designated Market Value is the middle between Replacement Cost/Net Realizable Value/Designated
Note: Final Inventory Value you go with the lower value been Designated Market Value and Cost.