Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 03 Aug 2017 My Price 4.00

outdated technology

An electronics store has a large number of computers in its inventory that use outdated technology. These computers are reported at their cost. Shortly after the December 31 year-end, the store manager insists that the computers can be sold for well over their cost. But the store's accountant has been told by the sales staff that it will be difficult to sell these computers for more than half of their inventory cost.

Required:
1. Why is the store manager reluctant to admit that these computers have little sales value?
2. What are the consequences for the business of failing to recognize the decline in value?
3. What are the consequences for the accountant of participating in a misrepresentation of the inventory's value?

Answers

Maurice Tutor
(5)
Status NEW Posted 03 Aug 2017 09:08 PM My Price 4.00

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