Question

Q1 Which of the following would satisfy the Division 70 definition of trading stock? Select one:...

Q1 Which of the following would satisfy the Division 70 definition of trading stock?

Select one:

a. Printing supplies to be used by a law firm

b. Meat held by a butcher

Q 2Which of the following is not an acceptable basis for valuing trading stock?

Select one:

a. Retail Inventory

e. Average Cost

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Q.1

Trading stock includes: (a) anything produced, manufactured or acquired that is held for purposes of manufacture, sale or exchange in the ordinary course of a business; and (b) live stock.

a. Printing supplies to be used by a law firm is qualified to be trading stock as the meat will not be considred as live stock.

Q.2

The stock must be valued at cost, which is the actual cost of the stock plus those charges that are necessary to get it to the place at which it is located. Only that stock that is actually on hand is included in the valuation of trading stock.

The accounting methods of first-in-first-out, average cost and standard cost are only acceptable

Hence retail inventory method is not acceptable

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is FALSE? Select one: a. The cost to maturity that a firm...
Which of the following is FALSE? Select one: a. The cost to maturity that a firm pays on its existing bonds equals the rate of return required by the market. b. The cost of retained earnings is always lower than the cost of a new issue of common stock due to the absence of flotation costs when financing projects with retained earnings. c. The net proceeds used in calculation of the cost of long-term debt are funds actually received from...
Under the perpetual inventory system, which of the following accounts would not be used? Select one:...
Under the perpetual inventory system, which of the following accounts would not be used? Select one: a. Sales b. Accounts Payable c. Cost of Goods Sold d. Purchases e. Inventory Jones Merchandise uses a perpetual inventory system. It is a publicly traded company. On February 19 it sold $8,000 of motor parts to Vivak Candles on account. Jones statistics indicate 5% of its sales will result in returns. Jones's cost of inventory on motor parts is 50% of the sales...
Flag question Question text Which of the following is FALSE? Select one: a. The cost to...
Flag question Question text Which of the following is FALSE? Select one: a. The cost to maturity that a firm pays on its existing bonds equals the rate of return required by the market. b. The cost of retained earnings is generally higher than both the cost of debt and cost of preferred stock. c. The net proceeds used in calculation of the cost of long-term debt are funds actually received from the sale after paying for flotation costs and...
Which of the following statements is CORRECT? Select one: a. The days sales outstanding ratio tells...
Which of the following statements is CORRECT? Select one: a. The days sales outstanding ratio tells us how long it takes, on average, to collect after a sale is made. The account collection period (ACP) can be compared with the firm's credit terms to get an idea of whether customers are paying on time. Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-assets ratio was 67.5%....
Which of the following is FALSE? Select one: a. Capital budgeting is the process of evaluating...
Which of the following is FALSE? Select one: a. Capital budgeting is the process of evaluating and selecting short-term investments that are consistent with the firm's goal of maximizing owners' wealth. b. The purchase of additional physical facilities, such as additional property or a new factory, is an example of a capital expenditure. c. Capital budgeting techniques are used to evaluate a firm's fixed asset investments which provide the basis for the firm's earning power and value. d. Capital expenditure...
Question 1. According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which of the following...
Question 1. According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which of the following should be provided for in the financial statements? Legal cases brought against a company Future operating losses Costs of an expected future restructuring of a company Onerous contracts Question 2. Ralph Co aquires 80% of Angus Co on 1 January 20X7 for $780,000. At this date the net assets of Angus Co had a book value of $720,000 and a fair value of $750,000....
QUESTION 1 Which one of the following would NOT be necessary for an offer to have...
QUESTION 1 Which one of the following would NOT be necessary for an offer to have legal standing? A. The language must reflect the intent to become a party to a contract. B. All of the conditions under which the offer would be terminated must be identified. C. All the significant terms and/or conditions must be contained in the offer. D. The offer must be effectively communicated to the other party. 3 points    QUESTION 2 Which one of the...
Wal-Mart Online Wal-Mart is one of the largest companies in America. It is definitely the largest...
Wal-Mart Online Wal-Mart is one of the largest companies in America. It is definitely the largest retailer, both in terms of the number of stores (8,970 worldwide in 2011) and the level of sales ($419 billion from the 2011 Annual Report). By pushing suppliers to continually reduce costs, Wal-Mart is known for pursuing low prices and the stores often attract customers solely in-terested in lower prices. With Wal-Mart’s expansion into groceries, the company has be-come the largest retail grocer in...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Gender Bias in the Executive Suite Worldwide The Grant Thornton International Business Report (IBR) has described...
Gender Bias in the Executive Suite Worldwide The Grant Thornton International Business Report (IBR) has described itself as "a quarterly survey of business leaders from across the globe … surveying 11,500 businesses in 40 economies across the globe on an annual basis." 1 According to the 2011 IBR, the Asia Pacific region had a higher percentage (27 percent) of female chief executive officers (CEOs) than Europe and North America. Japan is the only Asia Pacific region exception. The report further...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT