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2 years ago

In a periodic inventory system, cost of goods sold is not recorded as each sale occurs. Group startsTrue or False

1 answer:

6 0

In a periodic inventory system, the cost of goods sold is not recorded as each sale that occurs is a true statement.

<h3>Periodic Inventory System</h3>

A physical count of the inventory is conducted at predetermined intervals as part of the periodic inventory system, a technique of inventory valuation for financial reporting reasons.
In order to calculate the cost of goods sold, this accounting method starts with an inventory at the beginning of the period, adds fresh inventory purchases throughout the period, and subtracts ending inventory.
A corporation using the periodic inventory system won't be aware of its unit inventory levels or COGS until the physical count process is finished.
For a company with a small number of SKUs operating in a sluggish market, this method might be suitable, but for all other companies, the perpetual inventory system is preferred.

Hence, the given statement is true.

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The manager of the bank where you work tells you that the bank has $300 million in deposits and $255 million dollars in loans. I

tigry1 [53]

Answer:

The bank is holding $19.5 million in excess reserves.

Explanation:

If the bank has $300 million is deposits and the reserve ratio is 8.5% then the bank needs to have minimum reserves of 8.5% of 300 million so the minimum reserves are 0.085*300 million = 25.5 million

How ever the actual reserves of the bank is the difference between deposits and loans. The deposits are 300 million and loans are 255 million so the actual reserves are 300 million-255 million= $45 million

Excess reserves is the difference between the actual reserves and the minimum reserves so 45 million - 25.5 million = 19.5 million.

4 0

2 years ago

A firm will find it profitable to hire workers up to the point at which their:

patriot [66]

Answer:

Explanation:

marginal resource cost is equal to their MRP.

7 0

2 years ago

Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adju

PSYCHO15rus [73]

Answer:

A. $800

B. $4,800

August 1, 2019

C.$3,300

$1,500

Explanation:

(a) Calculation for what was the balance in Supplies on January 1

Balance in Supplies on January 1=$950 + $700 - $850

Balance in Supplies on January 1=$800

(b) Calculation for what was the total premium and when was the policy purchased

Total premium=($400 x 12 months)

Total premium= $4,800

Calculation for when was the policy purchased

Prepaid Insurance, 1/31 $2,400

Monthly premium $400

Number of months remaining 6

($2,400/$400)

Hence, The Policy was purchase on August 1, 2019

Cash Paid $2,500

Salaries and wages payable, 1/31 $800

$3,300

Less: Salaries and wages expense $1,800

Salaries and wages payable, 12/31/19 $1,500

3 0

3 years ago

If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be the likely

Fynjy0 [20]

Answer:

Net Income will be overstated

Explanation:

The journal entry for salaries payable is

Salaries Expense Dr.

To Cash A/C

(Being salaries paid recorded)

Salaries expense is charged to net income and the journal entry is

Net Income Dr.

To Salaries Payable

Salaries expense reduces net income as it being a deductible expenditure for a corporate.

In the given case, salary expense has been accounted as a product cost. This would reduce the expenses and thus would overstate the net income.

5 0

3 years ago

Historically, 74% of credit card users carry a balance from month-to-month. A certain credit card company would like to study th

Hoochie [10]

Answer:

The probability more than 72% of the cardholders are carrying a balance is 0.2946

Explanation:

Test statistic (z) = (p' - p) ÷ sqrt[p(1-p) ÷ n]

p' is the sample proportion = 0.72

p is the population proportion = 0.74

n is the number of cardholders sampled = 140

z = (0.72 - 0.74) ÷ sqrt[0.74(1-0.74) ÷ 140] = -0.02 ÷ 0.037 = -0.54

The cumulative area of the test statistic is the probability that less than 72% of the cardholders are carrying a balance. The probability is 0.7054.

Probability (more than 72% of the cardholders are carrying a balance) = 1 - 0.7054 = 0.2946

3 0

3 years ago