‘The idea that stock should be included in accounts at the lower of historical cost and net realisable value follows the prudence convention but not the consistency convention.’ Required:
(a) Do you agree with the quotation?
(b) Explain, with reasons, whether you think this idea (that stocks should be included in accounts at the lower of historical cost and net realisable value) is a useful one. Refer to at least two classes of user of financial accounting reports in your answer.
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‘The idea that stock should be included in accounts at the lower of historical cost and net realisable value follows the prudence convention but not the consistency convention.’ Required: (a) Do you agree with the quotation? (b) Explain, with reasons, w
‘The idea that stock should be included in accounts at the lower of historical cost and net realisable value follows the prudence convention but not the consistency convention.’ Required:(a) Do you agree with the quotation?(b) Explain, with reasons, whether you think this idea (that stocks should be included in accounts at the lower of historical cost and net realisable value) is a useful one. Refer to at least two classes of user of financial accounting reports in your answer.
The idea that inventory should be included in accounts at the lower of historical cost and net realisable value follows the prudence convention but not the consistency convention.' Required: (a) Do you agree with the quotation? (b) Explain, with reasons, whether you think this idea (that inventory should be included in accounts at the lower of historical cost and net realisable value) is a useful one. Refer to at least two classes of user of financial accounting reports in your answer
Simple Advice to a Chief Executive This activity requires you to advise a business’s Chief Executive on how to maximise the profit figure reported in the business’s financial statements. The purpose is to illustrate how the generally accepted accounting conventions and principles, employed in preparing financial statements, impact on profit measurement. Food services business Peter Smith is the owner and Chief Executive of a business that provides food services. He believes that the business has considerable growth potential but needs...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...