question archive 1) Sure feet Corporation changed its inventory valuation method
1) Sure feet Corporation changed its inventory valuation method
Subject:BusinessPrice:2.87 Bought7
1) Sure feet Corporation changed its inventory valuation method. Which characteristic is jeopardized by this change?
Feedback value.
Representational faithfulness.
Comparability.
Consistency.
2) Land was acquired in 2011 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000. The land should be reported in the financial statements at: $48.000.
$40,000.
$27.000.
$46,000.
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Answer:
|
1 D |
Consistency | Since an organization have to follow same method of valuation until new method is more fare, since its maintain consistency in preparation of financial statements |
|
2 B |
$40,000 | Assets is reported at historical purchase cost. |
