When a company changes its inventory method to LIFO, an exception is made for the way accounting changes usually are reported. Explain the difference in the accounting treatment of a change to the LIFO inventory method from other inventory method changes.

Q: Both IFRS and U.S. GAAP apply the lower of cost or market method for reporting inventory values. If…

A: LCM Method: Termed as Lower of Cost or Market, this method explains that the inventory of a company…

Q: Explain what is meant by the Internal Revenue Service conformity rule with respect to the inventory…

A: Internal Revenue Service conformity rule is when prices rise and inventory quantities are not…

Q: A business using the perpetual inventory system, with its detailed subsidiary records, does not need…

A: The company can maintain its records of inventory on basis of two different systems: 1. Perpetual…

Q: If circumstances indicate that an inventory write-down is no longer appropriate: a. The write-down…

A: The correct answer is Option (b).

Q: Indicate the effects of inventory errors on the financial statements

A: Solution- 1-A merchandising company must be sure that it has properly valued its ending inventory.…

Q: Which of the following procedure is designed to prevent the company from ordering unnecessary items?…

A: D) Approval of purchase requisitions is the procedure designed to prevent the company from ordering…

Q: Explain issues that analysts should consider when examining a company’s inventory disclosures and…

A: Inventory Disclosure: Inventory disclosure is useful for management to evaluate inventory…

Q: Describe Change in Inventory Method and Inventory Errors.

A: Change in Inventory method:   Inventory change is the difference between the amount of last period's…

Q: How can an accounting change cause a company to increase a previously reported inventory amount?

A:

Q: True or False

A: Given statement is: Under the periodic inventory system, the merchandise inventory account is not…

Q: according to which section (s) in the Accounting Act the inventory is assessed. Explain your reasons…

A: Inventory includes the goods available for sale in the normal course of business or the finished…

Q: Discuss generally how product and period costs should be recognized at interim dates. Also discuss…

A: Interim financial reporting involves preparing financial statements for shorter periods within the…

Q: Can the company change its inventory accounting method, on what grounds? Discuss two (2) trade-offs…

A: Inventory valuation refers to the process of assigning a monetary value to the inventory of a…

Q: What is the difference between a perpetual inventoryand a physical inventory? If a company maintains…

A: Differentiate between a physical inventory system and a perpetual inventory system. Perpetual…

Q: Reversals of inventory write-downs may exceed the amount of the original write-down previously…

A: Inventory:- Inventories are shown in asset side of balance sheet as a current asset. It shows the…

Q: Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable…

A:

Q: Which of the following would cause periodic ending inventory to be overstated?

A: Note - the answer has been provided on the basis of information available in question. If any…

Q: t is possible to calculate shrinkage Multiple Choice   a)in Periodic Inventory Accounting but not…

A: Inventory shrinkage is the additional amount of inventory in the accounting records in comparison to…

Q: A company that uses the periodic inventory system makes the following errors:…

A: Periodic inventory system refers to a method of inventory valuation in which physical count of…

Q: alternative methods by which entities determine their inventory

A: Inventory is the part of current assets which are sold and purchased in case of a trading entity.

Q: Describe the effects of misstatement of ending inventory.

A:

Q: Consider each of the following independent situations. Should a company report the goods in its…

A: The purchase obligation is yet to take place, so, neither an asset nor a liability is created.…

Q: Briefly explain the "accrual basis assumption" and why financial statements are prepared under this…

A: As per our protocol we provide solution to the one question only but as you have asked multiple…

Q: Determine what report (unqualified, qualified, adverse, or disclaimer) is appropriate Your client…

A: Unqualified Opinion with an additional explanatory paragraph

Q: Describe the accounting treatment for a change in inventory method other than to LIFO.

A: Method of Inventory: Inventory refers to the current assets that a company expects to sell during…

Q: Explain the accounting treatment of material inventory errors discovered in an accounting period…

A: Materials inventory: Material inventories are the primary materials which are used in the…

Q: Identify the following questions as most likely to be asked by an internal (I) or an external (E)…

A: Definition: Internal users: The internal users are the users of the information who are within the…