If the replacement cost of inventory is greater than its historical cost, the increase in value does not affect the company's financial statements.

a. true
b. false

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iamloyal4148 iamloyal4148

15-11-2022
Business

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If the replacement cost of inventory is greater than its historical cost, the increase in value does not affect the company's financial statements.

a. true
b. false

Respuesta :

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abhinavjh321 abhinavjh321 · Answer 1 · 2022-11-17T10:33:24+01:00

Yes, it is true. If the replacement cost of inventory exceeds its historical cost, the increase in value has no effect on the company's financial statements.

A company is a natural legal organization founded by an association and group of individuals to work together to achieve a shared goal. It could be a business or industrial enterprise. 'A company is a body corporate or an incorporated commercial entity that is registered under the Companies Act. It might be a limited or unlimited company, private or public, limited by guarantee or a business with share capital, or a community interest company.' The law regards the company as a legal artificial person because it has its own name and bank accounts. It can also possess property in its name, initiate a lawsuit against other corporations or individuals, or collaborate with other businesses.

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If the replacement cost of inventory is greater than its historical cost, the increase in value does not affect the company's financial statements. a. true b. false

Respuesta :

Otras preguntas

If the replacement cost of inventory is greater than its historical cost, the increase in value does not affect the company's financial statements.

a. true
b. false