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The condition of the goods and the supply and demand for the goods would both be factors that affect the liquidation value of a company's inventory. The sales method used during the disposal of the inventory would also impact the value of the goods sold. Inventory liquidators know that anything can be sold if the price is low enough but generally chose a method that best meets the needs of the company or creditor selling the goods. If cash is needed quickly goods can be sold at auction to the highest bidder with no reserve price. If time is not critical goods can be initially marked down by a certain percentage and then at incrementally larger discounts until the inventory is completely liquidated.
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What is estimated annual carrying in money insurance?
value of the inventory
The situation that requires a departure from the cost basis of accounting to the lower of cost or market basis in valuing inventory is necessitated by?
Decline in the value of inventory
When quick ratio is greater than current ratio?
The main difference between quick and current ratios is the inventory. In cases where inventory value is in -ve (ie, stale goods and disposing them off takes money. hence, the net value of inventory goes -ve), CR < QR [addition of -ve qty] HTH
What is the GAAP method for determining what inventory is obsolete or slow moving?
The GAAP method for obsolete or slow moving inventory is to account for all inventory using either market value or cost method. The method which results in the lower amount is the one that is used.
Short notes on the Inventory?
Inventory refers to the tangible goods and materials that a business holds for the purpose of reselling. The reasons for keeping include appreciation of value, economies of scale, seasonal demand, time and uncertainty.
What does shrinkage means in retail?
Shrinkage is the difference between the stock on the inventory book and the actual physical stock. Shrinkage is also deifned as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock. Shrinkage % is calculated as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock by the retail sales of this volume
Is inventory reported at cost or retail for balance sheet reporting?
Inventory is recorded at the lower of cost or market value.
If the cost of an item of inventory is 60 the current replacement cost is 65 and the selling price is 95 the amount included in inventory according to the lower of cost or market concept is?
Inventory is generally carried on the balance sheet at its historical cost to the firm. This represents the most accurate value since it was an amount actually paid by the firm, not an estimate. If the market value changes upwards, the balance sheet value is not changed since accounting principles generally favor the more conservative (lower) value. If however the market value of inventory decreases (through obsolescence for example), then the inventory value is adjusted downward to accurately reflect this and ensure the value is not materially overstated on the firm's balance sheet. The retail price is never used for inventory valuation. The retail price will be used only for the income statement. So, using your example, the amount included in inventory would be 60.
What is the value of goodwill Upon liquidation?
There is no value of goodwill upon liquidation as business has no cutomer base and company is going to be liquidated in this case assets have lower value and there is no chance for goodwill of business.
What is meant by the term inventory?
inventory (also called stocks) comprises of work in progress ,stores & spares; raw materials;packing materials etc.they are valued at net realisable value or valued at cost whichever is lower.
Liquidation value of the firm asset could be considered as?
The average wealth of shareholder
Can a Used mattress be sold?
yes, a used mattress can be sold in either retail stores (value villiage) or at a garage or yard sale :)
How does accrual accounting handle inventory control?
When you take an inventory and calculate the value, this value is compared to the last time an inventory was calculated. If the value of the inventory has increased (say by $100), then a journal entry reflecting a debit of $100 to Inventory account (an asset) and a credit to your Cost of Goods Account.
What are the 10 methods of inventory valuation?
1. Weighted Average 2. LIFO (Last-in-last Out) 3. FIFO (First-in-first-out) 4. Lower of cost or market (LCM) 5. Gross Profit Method 6. Dollar-Value- LIFO 7. Retail Method 8. Dollar-value LIFO retail
Where is inventory is reported in financial statement?
Value of Inventory is an asset on the balance sheet.
Where can I find information on the retail value of auto wheels?
You can go to Walmart to see the retail value of their auto tires. You can go to Pepsboy to see the retail value of their auto tires. You can go to auto zone for the retail value of their autio tires.
Which style drapes have the most retail value?
European style drapes an dpatterns have the most retail value.
