Download e-book for iPad: Accounting for Business Organisations: A Practical Approach by G J Taylor (auth.)

Download e-book for iPad: Accounting for Business Organisations: A Practical Approach by G J Taylor (auth.)

By G J Taylor (auth.)

ISBN-10: 1349077852

ISBN-13: 9781349077854

ISBN-10: 1349077879

ISBN-13: 9781349077878

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Extra resources for Accounting for Business Organisations: A Practical Approach

Sample text

This happens because prices are rlslng. If the opposite were true the FIFO method would produce more conservative results. The effects of inflation are of course reported separately in current cost accounts. The FIFO method is realistic in that it represents the physical flow of goods. Osgerby can identify each separate batch of fragrances and the prices paid. (Obviously, this may not be as easy in a multi-product firm). £6 each). This produces a problem. £10,000. This will affect future cash flow.

See SSAP9). Delicatessen Perishable stock which should be cleared as quickly as possible. Net realisable value FIFO Article Further details required on nature of selling. 6 a) Osgerby, as a professional accountant, should use the method which gives a 'true and fair' view of the profits reported, liabilities and assets of Giraffe (UK) Ltd. This, as we have shown, can be highly subjective and open to personal judgement. If the concept of conservatism is followed for stock valuation, the average method (which produces smaller profits) would be used initially, because it values stock at a lower level.

Delicatessen Perishable stock which should be cleared as quickly as possible. Net realisable value FIFO Article Further details required on nature of selling. 6 a) Osgerby, as a professional accountant, should use the method which gives a 'true and fair' view of the profits reported, liabilities and assets of Giraffe (UK) Ltd. This, as we have shown, can be highly subjective and open to personal judgement. If the concept of conservatism is followed for stock valuation, the average method (which produces smaller profits) would be used initially, because it values stock at a lower level.

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Accounting for Business Organisations: A Practical Approach by G J Taylor (auth.)


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