This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1919 edition. Excerpt: ...market, it is not conservative to place a higher value on an inventory item than the price at which the same thing can be duplicated in the open market. It may seem inconsistent to advocate a somewhat different principle when purchases have been made_on a rising market and where goods cannot be ...
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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1919 edition. Excerpt: ...market, it is not conservative to place a higher value on an inventory item than the price at which the same thing can be duplicated in the open market. It may seem inconsistent to advocate a somewhat different principle when purchases have been made_on a rising market and where goods cannot be duplicated, except at a higher price. In this case, however, the conservative course is to carry the items at cost and thus do away with the objectionable practice of anticipating profit. No profit is earned until a sale is made to a solvent debtor. Duty and freight paid may be added. "A practice which deserves condemnation is that of pricing finished goods at sales prices, less an estimated cost of delivery. This anticipates the entire profit on such sales, for it cannot be said that a profit is ever earned until delivery has been made and a cause of action established against a solvent debtor. The fact that goods may be made up on the order of a responsible purchaser in no way alters the principle. Until delivery has been made and the goods accepted, the sales contract is not complete. It is not uncommon for orders to be cancelled or goods refused for so many reasons that they cannot be enumerated here. Therefore, no conservative manufacturer or other business man considers that any profit is earned on undelivered goods." (Montgomery--Auditing) Discussing the same point, A. Lowes Dickinson says: "Perhaps one of the most difficult questions which accountants have to decide is the correct enumeration and valuation of stocks on hand. The theory governing the valuation of this asset is that, inasmuch as no profits can be realized until the goods are actually sold, it is not safe to take credit for any profit thereon until a sale has...
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Add this copy of Complete Accounting Course to cart. $31.73, new condition, Sold by Ingram Customer Returns Center rated 5.0 out of 5 stars, ships from NV, USA, published 2022 by Legare Street Press.
Add this copy of Complete Accounting Course to cart. $40.32, new condition, Sold by Ingram Customer Returns Center rated 5.0 out of 5 stars, ships from NV, USA, published 2022 by Legare Street Press.
