cost or market whichever is lower

简明释义

成本与市价孰低

英英释义

例句

1.In preparing the financial statements, the accountant applied the rule of cost or market whichever is lower for all raw materials.

在编制财务报表时，会计对所有原材料应用了成本或市场价中较低者的规则。

2.The auditor recommended that the firm adopt cost or market whichever is lower for its inventory valuation to ensure accuracy.

审计师建议公司采用成本或市场价中较低者进行库存评估，以确保准确性。

3.The company values its inventory at cost or market whichever is lower, ensuring that they do not overstate their assets.

公司按照成本或市场价中较低者来评估库存，确保不会高估资产。

4.To comply with GAAP, businesses must report inventory using cost or market whichever is lower to avoid inflated profits.

为了遵守GAAP，企业必须使用成本或市场价中较低者来报告库存，以避免利润虚高。

5.When assessing the value of unsold goods, the retailer uses cost or market whichever is lower to determine potential losses.

在评估未售商品的价值时，零售商使用成本或市场价中较低者来确定潜在损失。

作文

In the world of accounting and finance, one of the fundamental principles is the concept of valuing inventory. This is where the phrase cost or market whichever is lower comes into play. Understanding this principle is crucial for businesses as it directly impacts their financial statements and overall profitability. The idea behind cost or market whichever is lower is to ensure that assets are not overstated on the balance sheet. Essentially, it means that when valuing inventory, a company must choose between the cost of the inventory and its current market value, selecting the lower of the two. This approach helps in accurately reflecting the financial health of a business.To elaborate further, let’s consider an example. Suppose a company has purchased a batch of goods at a cost of $10,000. However, due to market fluctuations, the current market value of these goods has dropped to $8,000. According to the principle of cost or market whichever is lower, the company should record the inventory at $8,000, rather than $10,000. This conservative approach prevents the company from inflating its asset values, which could mislead investors and other stakeholders about its true financial condition.The application of cost or market whichever is lower is particularly important during times of economic uncertainty. When market values decline, businesses may face significant losses if they do not adjust their inventory values accordingly. By adhering to this principle, companies can present a more realistic view of their assets and avoid potential financial pitfalls. It also plays a role in tax reporting, as lower asset valuations can lead to reduced taxable income.Moreover, this principle is not limited to just physical inventory but can also apply to various assets. For instance, if a company holds investments in stocks or bonds, and the market value of these investments falls below their purchase price, the same rule would apply. The company would need to recognize the loss and report the investment at its current market value, again choosing cost or market whichever is lower.In conclusion, the phrase cost or market whichever is lower encapsulates a conservative approach to accounting that prioritizes accuracy and transparency. By ensuring that inventory and other assets are not overstated, businesses can maintain integrity in their financial reporting. This principle not only protects the interests of the company but also those of its investors, creditors, and other stakeholders. In a rapidly changing economic landscape, understanding and applying the concept of cost or market whichever is lower is essential for sound financial management and decision-making.

在会计和金融的世界中，一个基本原则是库存估值的概念。这就是短语成本或市场，取其较低者发挥作用的地方。理解这一原则对企业至关重要，因为它直接影响到财务报表和整体盈利能力。成本或市场，取其较低者的背后理念是确保资产在资产负债表上不会被高估。本质上，这意味着在评估库存时，公司必须在库存的成本和其当前市场价值之间进行选择，选择两者中较低的一项。这种方法有助于准确反映企业的财务健康状况。进一步阐述，让我们考虑一个例子。假设一家公司以10,000美元的成本购买了一批商品。然而，由于市场波动，这些商品的当前市场价值已降至8,000美元。根据成本或市场，取其较低者的原则，公司应将库存记录为8,000美元，而不是10,000美元。这种保守的方法防止公司夸大其资产价值，这可能会误导投资者和其他利益相关者关于其真实财务状况。在经济不确定时期，成本或市场，取其较低者的应用尤为重要。当市场价值下降时，如果企业不相应调整其库存价值，可能会面临重大损失。通过遵循这一原则，公司可以更真实地呈现其资产状况，避免潜在的财务陷阱。它在税务报告中也起着重要作用，因为较低的资产估值可能导致应纳税收入减少。此外，这一原则不仅限于物理库存，还可以适用于各种资产。例如，如果一家公司持有股票或债券的投资，而这些投资的市场价值低于其购买价格，同样的规则也会适用。公司需要确认损失并按当前市场价值报告投资，再次选择成本或市场，取其较低者。总之，短语成本或市场，取其较低者概括了一种保守的会计方法，优先考虑准确性和透明度。通过确保库存和其他资产不会被高估，企业可以在财务报告中保持诚信。这一原则不仅保护公司的利益，也保护其投资者、债权人和其他利益相关者的利益。在快速变化的经济环境中，理解和应用成本或市场，取其较低者的概念对健全的财务管理和决策至关重要。