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Merchandise inventory is reported as a long-term asset on the balance sheet?
7
Does consignment stock have to be reported as inventory?
Yes, consignment stock must be recorded and reported. It is a non-asset inventory and must be documented.
Accrued revenue is reported and recorded when?
the moment the transaction occurs not when you receive the money
Where is inventory is reported in financial statement?
Value of Inventory is an asset on the balance sheet.
How is this shrinkage recorded in the accounting record?
Shrinkage is recorded in the accounting records as a loss, typically by adjusting the inventory account. This is done by debiting a loss account (often called "inventory shrinkage" or "shrinkage loss") and crediting the inventory account to reflect the decrease in inventory value. This adjustment helps maintain accurate financial statements by ensuring that the reported inventory levels match the physical counts. Additionally, regular shrinkage analysis can help identify underlying issues such as theft or inventory management problems.
How should this tranacstion be recorded in the journal entry if merchandise inventory that cost 620000 is reported on the balance sheet at 690000?
debit owners equity 70000credit inventory 70000
Merchandise inventory is reported as a long-term asset on the balance sheet?
7
Does consignment stock have to be reported as inventory?
Yes, consignment stock must be recorded and reported. It is a non-asset inventory and must be documented.
Accrued revenue is reported and recorded when?
the moment the transaction occurs not when you receive the money
Is inventory reported at cost or retail for balance sheet reporting?
Inventory is recorded at the lower of cost or market value.
The Cost of Goods Sold account is classified as?
Expense on the income statement. The COI or Merchandise Inventory is reported on the balance sheet as an asset.
Are temporary investments are reported on the balance sheet at cost?
NO,Inventory is recorded at the lower of cost or market value.
Where is inventory is reported in financial statement?
Value of Inventory is an asset on the balance sheet.
How is this shrinkage recorded in the accounting record?
Shrinkage is recorded in the accounting records as a loss, typically by adjusting the inventory account. This is done by debiting a loss account (often called "inventory shrinkage" or "shrinkage loss") and crediting the inventory account to reflect the decrease in inventory value. This adjustment helps maintain accurate financial statements by ensuring that the reported inventory levels match the physical counts. Additionally, regular shrinkage analysis can help identify underlying issues such as theft or inventory management problems.
Should purchase of inventory be reported net of discount and net of vat?
Yes, the purchase of inventory should be reported net of discounts, as these discounts represent reductions in the purchase price that effectively lower the cost of inventory. However, inventory should be reported at its gross amount before VAT, as VAT is typically recoverable and does not form part of the cost of inventory for accounting purposes. Thus, the reported inventory value reflects the actual amount paid after discounts but excludes VAT.
Can advertising expenses reported as inventory?
well no you cant
The revenue recognition concept states that revenue should be recorded in the same period as the cash is received?
False Because it determines when revenue is credited to a revenue account. Cash method means the transaction is reported when cash is received, but the revenue recognition concept means a transaction is reported as a sale even if no money has been paid. Cash basis does not recognize payable or receivable accounts.
