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devry acct304 week 7 discussions

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Question;week 7Inventories?LCM (graded);Hello Class;The lower-of-cost-or-market (LCM) approach was developed to avoid reporting inventory at;an amount greater than the benefits it can provide. The LCM approach;records losses in the period the value of the inventory drops below its;cost instead of later in the period that the goods are ultimately sold.Is this a conservative or an aggressive approach? What does GAAP say about LCM?Inventory Errors (graded);Hello Class;It is discovered in 2013 that ending inventory from 2011 is understated.;What accounts will be affected by this understatement, and how will they be affected?;This is a situation that really happens. Start with the 2011 inventory;being understated, and track the changes through the inventory account;to 2013.

 

Paper#38472 | Written in 18-Jul-2015

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