All categories

2 years ago

Which cost flow assumption generally results in the highest reported amount of net income in periods of rising inventory costs?.

1 answer:

4 0

FIFO is cost flow assumption that generally results in the highest reported amount of net income in periods of rising inventory costs.

<h3>What is First In, First Out?</h3>

First In, First Out, can be regarded as the is an asset-management techniques which is been used in analyzing assets.

With this techniques the asset that is usually disposed first are those that are first gotten, and this is usually done for the purpose of tax, and uses the assumption that there inclusion of old items in income statement.

learn more about FIFO at :brainly.com/question/24137318

#SPJ1

You might be interested in

Corporations issue convertible debt for two main reasons. One is the desire to raise equity capital that, assuming conversion, w

just olya [345]

Answer:

corporations can obtain financing at lower rates

Explanation:

Convertible debts are a type of long term capital financing that has the option of converting the debt into stock or equity. Corporations issue convertible debts to balance equity and liabilities.

A convertible debt will usually have a lower interest because the holder of the debt has the option of converting it to stock. A conversion occurs after a certain period. Investors willingly opt for convertible debts as the conversion aspect makes them less risky. Companies will opt for them because they are less expensive in interest payments, hence a cheaper form of obtaining capital.

4 0

3 years ago

Sales on account (all are collectible) amounted to $560,000 during 2019. Accounts receivable were $112,000 on January 1, 2019 an

Alekssandra [29.7K]

Answer:

Cash collected from customers =$574,000.

Explanation:

The cash collected ca be worked out using the formula below:

<em>Opening balance of account. receivable + sales on account - Closing balance of account receivable</em>

<em>Note that addition credit sales increases the amount in the receivable account.</em>

So we can apply this formula as follows:

112,000 + 560,000 - 98,000

= $574,000.

Cash collected from customers =$574,000.

3 0

3 years ago

Read 2 more answers

Both Amy and Brad produce and consume apple pie and ice cream. In one hour, Brad makes five apple pies or ten gallons of ice cre

Arte-miy333 [17]

Answer:

Amy has absolute advantage in the production of Apples pies and ice cream.

Amy has comparative advantage in the production of Apple pies.

Brad has a comparative advantage in production of ice creams

Amy should specialise in the production of Apple pies, brad should specialise in the production of icecream

Explanation:

A person has comparative advantage in production if he produces at a lower opportunity cost when compared with other people.

Brad's opportunity cost:

In producing apple pies = 10 / 5 = 2

In producing ice cream :5 / 10 = 0.5

Amy's opportunity cost:

In producing apple pies : 15/15 = 1

In producing icecreams : 15/15 = 1

Amy has the lower opportunity cost when compared with Brad in producing apples pies. Therefore, she has comparative advantage in the production of Apple pies.

Brad has the lower opportunity cost when compared with Amy in producing ice cream. Therefore, he has comparative advantage in the production of ice cream.

A person should specialise and trade the good for which she has a comparative advantage.

A person has absolute advantage in the production of a good or service If he produces more quantity of the good when compared with other people.

Amy has absolute advantage in the production of both goods.

6 0

3 years ago

In the last quarter of 2007, a group of 64 mutual funds had a mean return of 4.1% with a standard deviation of 6.9%. If a nor

Anna [14]

Answer:

A) 16%

B) 50%

C) 99.7%

D) 2.5%

Explanation:

5 0

3 years ago

Scenario: Blickinstock at the Crossroads Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin Amer

Lena [83]

Answer:

A maquiladora is a factory that imports raw materials (usually benefiting from special tax regimes), processes them and manufactures goods that are exported to the company's home country. Maquiladoras benefit from low wages and are generally labor intensive industries.

E.g. many maquiladoras work in the textile industry, where they import all the materials they need, and then they manufacture clothes which are exported to other countries.

5 0

3 years ago