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4 years ago

A disadvantage of the fixed-period inventory system is that:

Business

1 answer:

Andrei [34K]4 years ago

4 0

Answer:

The correct answer is letter "B": since there is no count of inventory during the review period, a stockout is possible.

Explanation:

The fixed-period inventory system, also known as a periodic inventory system, only updates the organization’s inventory balance when an actual physical count of the inventory is necessary. Most companies only carry out a physical inventory count once every quarter or year, being this the reason why this system is called "fixed-period". However, this could lead to a company stockout at an unexpected period when the count was not carried out yet.

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Alexxx [7]

Answer:

Answer is $135,000...

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4 years ago

Park Corporation is planning to issue bonds with a face value of $750,000 and a coupon rate of 7.5 percent. The bonds mature in

nignag [31]

Answer:

Debit cash with $750,000; and credit Bond payable also with $750,000.

Explanation:

The journal entry will appear as follows:

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3 years ago

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Naddika [18.5K]

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3 years ago

Consider two firms, Firm X and Firm Y, that have identical assets that generate identical cash flows. Firm Y is an a minus equ

ddd [48]

Answer:

$26.52.

Explanation:

We use the MM Proposition I formula as follows:

VL = VU + (Tc * D) ....................................................... (1)

Where;

VL = Value of a levered firm, i.e. X = ?

VU = Value of an unlevered firm, i.e. Y = $24

Tc = Tax rate = 21%

D = value of debt = $12

Note: The US 2020 corporate tax rate is used as the tax rate since no tax rate is given in the question.

Substituting the values into equation (1), we have:

VL = $24 + (21% * $12) = $24 + $2.52 = $26.52.

Therefore, According to MM Proposition I, the stock price for Firm X is closest to $26.52.

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3 years ago

Mondo Snow Removal's cost formula for its vehicle operating cost is $1,060 per month plus $429 per snow-day. For the month of Ja

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Answer:

Activity variance = $858 unfavorable

Explanation:

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Activity variance  858 unfavorable

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3 years ago