Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. if a material amount of inventory has been ordered

If a material amount of inventory has been ordered through a formal purchase contract at...

50.1K

Verified Solution

Question

Accounting

If a material amount of inventory has been ordered through a formal purchase contract at the balance sheet date for future delivery at firm prices,

an appropriation of retained earnings is necessary.

this fact must be disclosed.

disclosure is required only if prices have since risen substantially.

disclosure is required only if prices have declined since the date of the order.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Find the derivative of the function below. Find the derivative of the function below. 

Finance
1.2K views

Bonus Value. You have a bond that pays $ 100 of annual interest, with a value...

General Management
1.2K views

Discuss financial aspects involved in Aviation Industry in detail word count (500-600 words)

Accounting
1.2K views

Blossom Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $37,760 Supplies Expense...

Algebra
1.2K views

15 26 Calculate the iterated in 15 6x y 2x dy d dx x e...

Accounting
1.2K views

Case 11A-7 Transfer Pricing; Divisional Performance [L011-5] Weller Industries...

Accounting
1.2K views

Inventory information for Moby Corporation disclosed the following information for the month of June: Instructions...

Accounting
1.2K views

Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on...

Accounting
1.2K views

49. A factory machine was purchased for $90,000 on January 1,2011. It was estimated that...

Accounting
1.2K views

Amalgamated General Corporation is a consulting firm that also offers financial services through its credit...

Accounting
1.2K views

How come the credit sales for December and November are divided by 0.6 and 0.3

Accounting
1.2K views

The balance in Allowance for Doubtful Accounts is important to the calculation of bad debt...