Chapter 7&8 Accounting


Different categories of financial assets are valued differently in the balance sheet.  The different valuation methods have one common goal.  Give your thoughts on this.  Also, pick a financial asset that is valued in a unique manner and give some details as to the valuation method.

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Why are cash balances in excess of those needed to finance business operations viewed as relatively nonproductive assets?  Suggest several ways in which these excess cash balances may be utilized more effectively.     
You own a small business. It is a retail clothing outlet. Which inventory valuation method would you use for your business and why?


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