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Devry ACCt304 week 7 discussions

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Question;Week 7;Inventories?LCM (graded);The;lower-of-cost-or-market (LCM) approach was developed to avoid reporting;inventoryatan 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?;Q2;Inventory Errors (graded);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#40594 | Written in 18-Jul-2015

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