How can we help?

You can also find more resources in our Help Center.

Study sets matching "intermediate accounting chapter 9"

Study sets
Classes
Users

Study sets matching "intermediate accounting chapter 9"

47 terms
Intermediate Accounting - Chapter 9
Which of the following is true about l…
The primary basis of accounting for in…
When valuing raw materials inventory a…
In no case can "market" in the lower-o…
d. All of these.
d. future utility will be less than their cost.
c. Current replacement cost
b. estimated selling price in the ordinary course of business…
Which of the following is true about l…
d. All of these.
The primary basis of accounting for in…
d. future utility will be less than their cost.
41 terms
Intermediate Accounting chapter 9
Assets held for sale in the normal cou…
goods acquired for use in the producti…
units that have been started in produc…
Costs included in work-in-process inve…
Inventory
Raw materials inventory
Works in process inventory
1. costs in direct material... 2. costs in direct labor... 3. costs…
Assets held for sale in the normal cou…
Inventory
goods acquired for use in the producti…
Raw materials inventory
47 terms
Intermediate Accounting - Chapter 9
Which of the following is true about l…
The primary basis of accounting for in…
When valuing raw materials inventory a…
In no case can "market" in the lower-o…
d. All of these.
d. future utility will be less than their cost.
c. Current replacement cost
b. estimated selling price in the ordinary course of business…
Which of the following is true about l…
d. All of these.
The primary basis of accounting for in…
d. future utility will be less than their cost.
81 terms
Intermediate Accounting Chapter 9
Inventory
nature of the business
raw materials, work in process, and fi…
raw materials
assets held for sale in the normal course of business; also,…
The type of items included in the inventory of a merchandisin…
Three types of inventory for a manufacturing firm
inventory acquired by a manufacturer for use in the productio…
Inventory
assets held for sale in the normal course of business; also,…
nature of the business
The type of items included in the inventory of a merchandisin…
54 terms
Intermediate Accounting: Chapter 9
Lower-of-cost-or-market
Cost
Market (for LCM)
Market
Lower-of-cost-or-market - Inventories are recorded at their c…
Recall that cost is the acquisition price of inventory comput…
Market (for LCM)... The cost to replace an inventory item by pur…
INTERNATIONAL PERSPECTIVE ... IFRS defines market as net realiza…
Lower-of-cost-or-market
Lower-of-cost-or-market - Inventories are recorded at their c…
Cost
Recall that cost is the acquisition price of inventory comput…
47 terms
Intermediate Accounting - Chapter 9
Which of the following is true about l…
The primary basis of accounting for in…
When valuing raw materials inventory a…
In no case can "market" in the lower-o…
d. All of these.
d. future utility will be less than their cost.
c. Current replacement cost
b. estimated selling price in the ordinary course of business…
Which of the following is true about l…
d. All of these.
The primary basis of accounting for in…
d. future utility will be less than their cost.
25 terms
Intermediate Accounting Chapter 9
Average Days to Sell Inventory
Conventional Retail Inventory Method
Costs of Goods Sold Method
Cost to Retail Ratio
A measure that represents the average number of days' sales f…
A method of valuing ending inventory that uses only a cost ra…
A method of valuing inventory in which cost of goods sold is…
The total goods available for sale at cost divided by the tot…
Average Days to Sell Inventory
A measure that represents the average number of days' sales f…
Conventional Retail Inventory Method
A method of valuing ending inventory that uses only a cost ra…
81 terms
Intermediate Accounting Chapter 9
Inventory
nature of the business
raw materials, work in process, and fi…
raw materials
assets held for sale in the normal course of business; also,…
The type of items included in the inventory of a merchandisin…
Three types of inventory for a manufacturing firm
inventory acquired by a manufacturer for use in the productio…
Inventory
assets held for sale in the normal course of business; also,…
nature of the business
The type of items included in the inventory of a merchandisin…
22 terms
Intermediate Accounting Chapter 9
average days to sell inventory
conventional retail inventory method
cost-of-goods-sold method
cost-to-retail ratio
A measure that represents the average number of days' sales f…
A method of valuing ending inventory that uses only a cost ra…
A method of valuing inventory in which cost of goods sold is…
The total goods available for sale at cost divided by the tot…
average days to sell inventory
A measure that represents the average number of days' sales f…
conventional retail inventory method
A method of valuing ending inventory that uses only a cost ra…
54 terms
Intermediate Accounting: Chapter 9
Lower-of-cost-or-market
Cost
Market (for LCM)
Market
Lower-of-cost-or-market - Inventories are recorded at their c…
Recall that cost is the acquisition price of inventory comput…
Market (for LCM)... The cost to replace an inventory item by pur…
INTERNATIONAL PERSPECTIVE ... IFRS defines market as net realiza…
Lower-of-cost-or-market
Lower-of-cost-or-market - Inventories are recorded at their c…
Cost
Recall that cost is the acquisition price of inventory comput…
54 terms
Intermediate Accounting: Chapter 9
Lower-of-cost-or-market
Cost
Market (for LCM)
Market
Lower-of-cost-or-market - Inventories are recorded at their c…
Recall that cost is the acquisition price of inventory comput…
Market (for LCM)... The cost to replace an inventory item by pur…
INTERNATIONAL PERSPECTIVE ... IFRS defines market as net realiza…
Lower-of-cost-or-market
Lower-of-cost-or-market - Inventories are recorded at their c…
Cost
Recall that cost is the acquisition price of inventory comput…
32 terms
Intermediate Accounting Chapter 9
Market
Net Realizable Value
Lower-of-Cost-or-Market
Upper Limit (Ceiling)
in the phrase "the lower-of-cost-or-market" (LCM) generally m…
estimated selling price in the ordinary course of business, l…
company values inventory at the lower-of-cost-or-market, with…
net realizable value of inventory
Market
in the phrase "the lower-of-cost-or-market" (LCM) generally m…
Net Realizable Value
estimated selling price in the ordinary course of business, l…
22 terms
Intermediate Accounting Chapter 9
average days to sell inventory
conventional retail inventory method
cost-of-goods-sold method
cost-to-retail ratio
A measure that represents the average number of days' sales f…
A method of valuing ending inventory that uses only a cost ra…
A method of valuing inventory in which cost of goods sold is…
The total goods available for sale at cost divided by the tot…
average days to sell inventory
A measure that represents the average number of days' sales f…
conventional retail inventory method
A method of valuing ending inventory that uses only a cost ra…
30 terms
Intermediate Accounting Chapter 9
average-cost method
consigned goods
cost flow assumptions
dollar-value LIFO
Inventory-costing method that prices items in the inventory o…
Inventory held by one party (the consignee) who acts as the a…
Several systematic assumptions about the flow of inventory, u…
A variation of the LIFO inventory-costing method; it determin…
average-cost method
Inventory-costing method that prices items in the inventory o…
consigned goods
Inventory held by one party (the consignee) who acts as the a…
14 terms
Intermediate Accounting Chapter 9
Lower Cost of Market
Lower Cost of Market can be applied in…
Why would you estimate costs of invent…
Two popular methods of estimating endi…
The method causes losses to be recognized in the period the v…
1. Apply LCM to each individual item in the inventory such as…
1. Less Costly... 2. Less Time consuming.
1. Gross Profit Method... 2. Retail Inventory Method
Lower Cost of Market
The method causes losses to be recognized in the period the v…
Lower Cost of Market can be applied in…
1. Apply LCM to each individual item in the inventory such as…
53 terms
Intermediate Accounting chapter 9
Which of the following would not be in…
Which of the following would not be re…
A firm using the perpetual inventory m…
When using the periodic inventory meth…
Depreciation on office equipment in the sales manager's office
Machinery acquired by a manufacturing company for use in the…
Accounts Payable.
Trade discounts applicable to purchases during the period
Which of the following would not be in…
Depreciation on office equipment in the sales manager's office
Which of the following would not be re…
Machinery acquired by a manufacturing company for use in the…
47 terms
Intermediate Accounting - Chapter 9
Which of the following is true about l…
The primary basis of accounting for in…
When valuing raw materials inventory a…
In no case can "market" in the lower-o…
d. All of these.
d. future utility will be less than their cost.
c. Current replacement cost
b. estimated selling price in the ordinary course of business…
Which of the following is true about l…
d. All of these.
The primary basis of accounting for in…
d. future utility will be less than their cost.
47 terms
Intermediate Accounting - Chapter 9
Which of the following is true about l…
The primary basis of accounting for in…
When valuing raw materials inventory a…
In no case can "market" in the lower-o…
d. All of these.
d. future utility will be less than their cost.
c. Current replacement cost
b. estimated selling price in the ordinary course of business…
Which of the following is true about l…
d. All of these.
The primary basis of accounting for in…
d. future utility will be less than their cost.
47 terms
Intermediate Accounting - Chapter 9
Which of the following is true about l…
The primary basis of accounting for in…
When valuing raw materials inventory a…
In no case can "market" in the lower-o…
d. All of these.
d. future utility will be less than their cost.
c. Current replacement cost
b. estimated selling price in the ordinary course of business…
Which of the following is true about l…
d. All of these.
The primary basis of accounting for in…
d. future utility will be less than their cost.
47 terms
Intermediate Accounting - Chapter 9
Which of the following is true about l…
The primary basis of accounting for in…
When valuing raw materials inventory a…
In no case can "market" in the lower-o…
d. All of these.
d. future utility will be less than their cost.
c. Current replacement cost
b. estimated selling price in the ordinary course of business…
Which of the following is true about l…
d. All of these.
The primary basis of accounting for in…
d. future utility will be less than their cost.
10 terms
Chapter 9 Intermediate Accounting
Selling Price
Historical cost principle
- Style changes... - Shift in demand... - Re…
Net Realizable Value
A decline in replacement cost reflects or predicts a decline in
is abandoned when the future utility of the asset is less tha…
Applies to decreases in inventory value as the result of:
Selling price less completion and distribution costs
Selling Price
A decline in replacement cost reflects or predicts a decline in
Historical cost principle
is abandoned when the future utility of the asset is less tha…
54 terms
Intermediate Accounting: Chapter 9
Lower-of-cost-or-market
Cost
Market (for LCM)
Market
Lower-of-cost-or-market - Inventories are recorded at their c…
Recall that cost is the acquisition price of inventory comput…
Market (for LCM)... The cost to replace an inventory item by pur…
INTERNATIONAL PERSPECTIVE ... IFRS defines market as net realiza…
Lower-of-cost-or-market
Lower-of-cost-or-market - Inventories are recorded at their c…
Cost
Recall that cost is the acquisition price of inventory comput…
20 terms
Chapter 9 Intermediate Accounting
average days to sell inventory
cost of goods sold method
designated market value
gross profit method
a measure that represents the average number of days' sales f…
a method of valuing inventory in which cost of goods sold is…
the amount that a company compares to cost, when using the lo…
method of determining inventory amount, often used when it is…
average days to sell inventory
a measure that represents the average number of days' sales f…
cost of goods sold method
a method of valuing inventory in which cost of goods sold is…
18 terms
Intermediate accounting (Chapter 9)
shopworn
obsolete
to deter
wear
(leicht) beschädigt
veraltet, altmodisch
verhindern
Abnutzung
shopworn
(leicht) beschädigt
obsolete
veraltet, altmodisch
7 terms
Chapter 9 - Intermediate Accounting
Average days to sell inventory
Conventional retail inventory method
Cost-of-goods-sold method
Cost-to-retail ratio
A measure that represents the average number of days' sales f…
A method of valuing ending inventory that uses only a cost ra…
A method of valuing inventory in which cost of goods sold is…
The total goods available for sale at cost divided by the tot…
Average days to sell inventory
A measure that represents the average number of days' sales f…
Conventional retail inventory method
A method of valuing ending inventory that uses only a cost ra…
10 terms
Intermediate Accounting Chapter 9
Average days to sell
Conventional retail inventory method
Cost of Goods Sold Method
Cost to retail ratio
Average Days to Sell Inventory=365/Inventory Turnover
A method of valuing ending inventory that uses only a cost ra…
the loss is combined with cost of goods sold (direct method)
goods available at cost / goods available for sale at retail
Average days to sell
Average Days to Sell Inventory=365/Inventory Turnover
Conventional retail inventory method
A method of valuing ending inventory that uses only a cost ra…
10 terms
Intermediate Accounting Chapter 9
Average Cost
Conventional Retail Method
LIFO Retail Method
Recap of Other Retail Method Elements
Cost-to-retail percentage is based on the weighted averages o…
To approximate the lower of average cost and net realizable v…
If inventory at retail increases during the year a new layer…
...
Average Cost
Cost-to-retail percentage is based on the weighted averages o…
Conventional Retail Method
To approximate the lower of average cost and net realizable v…
9 terms
Intermediate Accounting: Chapter 9
Lower-of-Cost-or-Market (LCM)
Net Realizable Value (NRV)
Gross Profit Method (Gross Margin Meth…
Cost-to-Retail Percentage
Recognizes losses in the period that the value if inventory d…
The amount of cash the company expects to actually collect fr…
Estimates cost of goods sold which is then subtracted from co…
Ratio found by dividing goods available for sale at cost by g…
Lower-of-Cost-or-Market (LCM)
Recognizes losses in the period that the value if inventory d…
Net Realizable Value (NRV)
The amount of cash the company expects to actually collect fr…
81 terms
Intermediate Accounting Chapter 9
Inventory
nature of the business
raw materials, work in process, and fi…
raw materials
assets held for sale in the normal course of business; also,…
The type of items included in the inventory of a merchandisin…
Three types of inventory for a manufacturing firm
inventory acquired by a manufacturer for use in the productio…
Inventory
assets held for sale in the normal course of business; also,…
nature of the business
The type of items included in the inventory of a merchandisin…
19 terms
Chapter 9 Intermediate Accounting: Vocabulary
The term __ in the phrase "the lower-o…
__ is the estimated selling price in t…
A normal profit margin is subtracted f…
The general __ rule is: A company valu…
market
Net realizable value (NRV)
net realizable value less a normal profit margin
lower-of-cost-or-market
The term __ in the phrase "the lower-o…
market
__ is the estimated selling price in t…
Net realizable value (NRV)
23 terms
Intermediate Accounting Chapter 9
Dollar-value LIFO retail method
LIFO retail method
Average days to sell inventory
conventional retail inventory method
A method of valuing ending inventory that assumes a change in…
A method of valuing ending inventory that assumes that the ma…
A measure that represents the average number of days' sales f…
A method of valuing ending inventory that uses only a cost ra…
Dollar-value LIFO retail method
A method of valuing ending inventory that assumes a change in…
LIFO retail method
A method of valuing ending inventory that assumes that the ma…
18 terms
Chapter 9 Intermediate Accounting
GAAP requires companies to report inve…
Net Realizable Value is
Valuing inventory using IFRS
LCM Approach and net realizable value…
the lower of cost and net realizable value
selling price less any costs of completion,disposal, and tran…
inventory also is called at the lower of cost and net realiza…
recognized losses in the period when the value of inventory d…
GAAP requires companies to report inve…
the lower of cost and net realizable value
Net Realizable Value is
selling price less any costs of completion,disposal, and tran…
25 terms
Intermediate Accounting Chapter 9
Dollar-value LIFO retail method
LIFO retail method
Average days to sell inventory
Conventional retail inventory method
A method of valuing ending inventory that assumes a change in…
A method of valuing ending inventory that assumes that the ma…
A measure that represents the average number of days' sales f…
A method of valuing ending inventory that uses only a cost ra…
Dollar-value LIFO retail method
A method of valuing ending inventory that assumes a change in…
LIFO retail method
A method of valuing ending inventory that assumes that the ma…
14 terms
Intermediate Accounting Chapter 9
Lower Cost of Market
Lower Cost of Market can be applied in…
Why would you estimate costs of invent…
Two popular methods of estimating endi…
The method causes losses to be recognized in the period the v…
1. Apply LCM to each individual item in the inventory such as…
1. Less Costly... 2. Less Time consuming.
1. Gross Profit Method... 2. Retail Inventory Method
Lower Cost of Market
The method causes losses to be recognized in the period the v…
Lower Cost of Market can be applied in…
1. Apply LCM to each individual item in the inventory such as…
81 terms
Intermediate Accounting Chapter 9
Inventory
nature of the business
raw materials, work in process, and fi…
raw materials
assets held for sale in the normal course of business; also,…
The type of items included in the inventory of a merchandisin…
Three types of inventory for a manufacturing firm
inventory acquired by a manufacturer for use in the productio…
Inventory
assets held for sale in the normal course of business; also,…
nature of the business
The type of items included in the inventory of a merchandisin…
61 terms
9. Intermediate Accounting Chapter 9
cost-to-retail percentage
Dollarvalue LIFO retail method
Gross profit method
net markup, net markdown
The retail inventory method uses the cost-to-retail percentag…
Using the retail method to approximate LIFO is referred to as…
The gross profit method is not acceptable for the preparation…
Net markups and net markdowns are included in the retail colu…
cost-to-retail percentage
The retail inventory method uses the cost-to-retail percentag…
Dollarvalue LIFO retail method
Using the retail method to approximate LIFO is referred to as…
12 terms
chapter 9 intermediate accounting
a company values inventory at ____
when does a company abandon the histor…
the term 'market' in the phrase 'the l…
Target purchased a Timex wristwatch fo…
the lower-of-cost-or-market, with market limited to an amount…
the future utility (revenue-producing ability) of the asset d…
the cost to replace the item by purchase or reproduction
$25
a company values inventory at ____
the lower-of-cost-or-market, with market limited to an amount…
when does a company abandon the histor…
the future utility (revenue-producing ability) of the asset d…
54 terms
Chapter 9 Intermediate Accounting 1
According to conceptual framework, a l…
To be reported as a liability
Classifying liabilities as either curr…
Current Liabilities
1. Must have a probable future sacrifice of some economic ben…
- doesn't have to be payable in cash... - the amount and timing…
help investors and creditors asses the risk the liability wil…
obligations that are expected to be satisfied with current as…
According to conceptual framework, a l…
1. Must have a probable future sacrifice of some economic ben…
To be reported as a liability
- doesn't have to be payable in cash... - the amount and timing…
22 terms
Intermediate Accounting Chapter 9
Lower of cost
Net realizable value
NOTE: Companies often estimate those "…
Gross profit/ margin method:
A method of valuing inventory in which you record the lower o…
The estimated selling price of a product in the ordinary cour…
NOTE
Method that provides only an approximation of inventory and i…
Lower of cost
A method of valuing inventory in which you record the lower o…
Net realizable value
The estimated selling price of a product in the ordinary cour…
13 terms
Intermediate Accounting I - Chapter 9
Lower-of-cost-or-market (LCM)
Companies value goods at...
Net realizable value (NRV)
NRV-less a normal profit margin
the cost to replace the item by purchase or reproduction
...cost or cost to replace, whichever is lower.
estimated selling price in the ordinary course of business (c…
lower limit (floor)
Lower-of-cost-or-market (LCM)
the cost to replace the item by purchase or reproduction
Companies value goods at...
...cost or cost to replace, whichever is lower.
Intermediate Accounting Chapter 9
True or False... Net realizable value is…
True or False... a decline in the replace…
True or False... designated market value…
True or False... the departure from cost…
false
true
false
true
True or False... Net realizable value is…
false
True or False... a decline in the replace…
true
9 terms
Intermediate Financial Accounting Chapter 9
Lower-of-cost-or-market
Net realizable value
Net realizable value less a normal pro…
Replacement cost
an approach to valuing inventory that was developed to avoid…
the upper range from which the market price can fall
the lower range from which the market price can fall
the cost to replace the item by purchase or manufacture.
Lower-of-cost-or-market
an approach to valuing inventory that was developed to avoid…
Net realizable value
the upper range from which the market price can fall
5 terms
Intermediate accounting 1 chapter 9
Cost of merchandise purchased but not…
Estimated selling price of the product…
Debit cost of goods sold... Credit Invent…
gross method: discount is not included…
How do you value inventory on the balance sheet
Compute Net Realizable Value
Record an Inventory Write Down
What is the difference between the net method and the gross m…
Cost of merchandise purchased but not…
How do you value inventory on the balance sheet
Estimated selling price of the product…
Compute Net Realizable Value
9. Intermediate Accounting Chapter 9
cost-to-retail percentage
Dollarvalue LIFO retail method
Gross profit method
net markup, net markdown
The retail inventory method uses the cost-to-retail percentag…
Using the retail method to approximate LIFO is referred to as…
The gross profit method is not acceptable for the preparation…
Net markups and net markdowns are included in the retail colu…
cost-to-retail percentage
The retail inventory method uses the cost-to-retail percentag…
Dollarvalue LIFO retail method
Using the retail method to approximate LIFO is referred to as…
19 terms
Chapter 9 Intermediate Accounting: Questions
1. Where there is evidence that the ut…
2. Explain the rationale for the ceili…
3. Why are inventories valued at the l…
4. What approaches may be employed in…
1. Where there is evidence that the utility of goods to be di…
2. The upper (ceiling) and lower (floor) limits for the value…
3. The usual basis for carrying forward the inventory to the…
4. The lower-of-cost-or-market rule may be applied directly t…
1. Where there is evidence that the ut…
1. Where there is evidence that the utility of goods to be di…
2. Explain the rationale for the ceili…
2. The upper (ceiling) and lower (floor) limits for the value…
20 terms
Chapter 9 TB Intermediate Accounting
c
a
d
e
The ratio percentage of earnings retained is the same as that…
The earnings per share is computed for:... a. common stock... b. no…
In 2010, ABC Company reported earnings per share of $2.00 for…
Interest expense creates magnification of earnings through fi…
c
The ratio percentage of earnings retained is the same as that…
a
The earnings per share is computed for:... a. common stock... b. no…
CHAPTER 9 INTERMEDIATE ACCOUNTING 105
Q 9.1: When the replacement cost of an…
Q 9.2: What is the amount to be used f…
Q 9.3: Let A equal the reported invent…
Q 9.4: Peregrine Security has two prod…
the company uses net realizable value as the designated marke…
The net realizable value less a normal profit margin PG448
A will always be equal to or less than B.
$23.50 and $46.00 ... Calculate the ceiling by finding the NRV f…
Q 9.1: When the replacement cost of an…
the company uses net realizable value as the designated marke…
Q 9.2: What is the amount to be used f…
The net realizable value less a normal profit margin PG448
25 terms
Intermediate Accounting Chapter 9 Vocabs
dollar-value LIFO retail method
LIFO retail method
average days to sell inventory
conventional retail inventory method
A method of valuing ending inventory that assumes a change in…
A method of valuing ending inventory that assumes that the ma…
A measure that represents the average number of days' sales f…
A method of valuing ending inventory that uses only a cost ra…
dollar-value LIFO retail method
A method of valuing ending inventory that assumes a change in…
LIFO retail method
A method of valuing ending inventory that assumes that the ma…
31 terms
Intermediate Accounting Chapter 9: Investments
Amortized cost model
Associate
Available for sale investments
Consolidation
...
...
...
...
Amortized cost model
...
Associate
...
13 terms
Intermediate Accounting I - Chapter 9
Lower-of-cost-or-market (LCM)
Companies value goods at...
Net realizable value (NRV)
NRV-less a normal profit margin
the cost to replace the item by purchase or reproduction
...cost or cost to replace, whichever is lower.
estimated selling price in the ordinary course of business (c…
lower limit (floor)
Lower-of-cost-or-market (LCM)
the cost to replace the item by purchase or reproduction
Companies value goods at...
...cost or cost to replace, whichever is lower.
1 of 10