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monitta
3 years ago
5

Anka Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. An

ka Company’s inventories are reported at $1,004 million on its balance sheet. In its footnotes, Anka Company is required to report the amount at which inventories would have been reported under FIFO method. The difference between these two numbers is commonly referred to as what? A. LCM disclosures B. LIFO holding gain C. LIFO liquidation D. LIFO reserve
Business
1 answer:
katovenus [111]3 years ago
4 0

Answer:

C. LIFO liquidation

Explanation:

Benson Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. In its footnotes, Benson Company is required to report the amount at which inventories would have been reported under FIFO method.

The difference between these two numbers is commonly referred to as LIFO Reserve.

LIFO reserve represents the difference in ending inventory using LIFO and ending inventory if FIFO were employed instead.

Third option is the correct option.

LIFO reserve = FIFO inventory cost - LIFO inventory cost

FIFO inventory cost = LIFO inventory cost + LIFO reserve

You might be interested in
The goal of channels of distribution is to move products from producers to
Delvig [45]

Answer:

Final consumers

Explanation:

The goal of channels of distribution is to move products from producers to final consumers, that is, by bridging the gap between the producer and the consumer by bringing the product or service to the final buyer or consumer. Products and services may go through channel members known as intermediaries which include wholesalers, retailers, distributors.

7 0
3 years ago
The notation is Y = GNP = national income C = consumption I = private investment G = government spending X = exports M = imports
IRINA_888 [86]

The true statement is <em>D. When </em><em>BCA</em><em> is negative, it implies that government </em><em>budget deficits</em><em> and/or part of </em><em>domestic investment </em><em>are being financed with </em><em>foreign-controlled capital</em><em>.</em>

The above statement is based on the intimate relationship between a country's Balance of the Current Account (BCA) and how the country finances its domestic investments and pays for government expenditure.

Explanation:

National income = Y = GNP

Consumption = C

Private Investment = I

Government spending = G

Exports = X

Imports = M

Taxes = T

Therefore, the BCA = X-M = (S-1) + (T – G)

Where BCA = Balance of Current Account

Thus, the Balance of the Current Account (BCA) should be <u>positive</u> to avoid deficit-financing of government budgets.

Learn more: brainly.com/question/8859561

3 0
3 years ago
If the demand for an item increases,what effect will it have an price and quantity? A) price will increase and quantity increas.
vodka [1.7K]

Answer:

A) price will increase and quantity increase.

Explanation:

An increase in demand means more customers are willing and can afford to buy a product. Holding the other factors constant, an increase in demand results in many potential buyers chasing very few goods. The competition for the few goods leads to an increase in their prices. The equilibrium point moves up the graph to a new higher position as a result of an increase in demand.

As per the law of supply, quantity supplied increases as prices rise. Profit motives drive all business establishments. As prices increase due to increased demand, suppliers will be motivated to supply more to take advantage of high prices.

6 0
3 years ago
On July 1, 2010, Washington Post paid the par value of $100,000 for 8 percent bonds that mature on June 30, 2015 . Interest at 8
andrey2020 [161]

Answer:

$146.932,81    

Explanation:

You have to calculate the number of years that you have to keep the bond to mature, the answer is 5 years that is the difference between the two dates, now you have to calculate with the interest compound formula the future value of the bond so you have to use the next formula:

Future value = amount of money *((1+ interest rate)^(n))

Where n correspond to the number of years

Note: The interest rate is 8% but is paid each 6 months, it's a reason why you have to multiply n plus 2.

n= 5* 2

n= 10

FV= 100.000*((1+8%)^(10))  

FV = $215.892,50  

According with the information the bond will pay $215.892,50

 

4 0
3 years ago
Allocative efficiency occurs:
jonny [76]

Answer:

a. Anywhere inside or on the production possibilities frontier.

Explanation:

In an economy, the allocative efficiency may be defined as the economic state where the production of various goods or services is aligned with the preferences with the consumers.  

The allocative efficiency always materializes at the intersection of the supply curves and the demand curves.

On the \text{equilibrium point,} the price for a supply \text{exactly matches} with the demand for the product \text{for that supply} at that price, and thus all the products are sold.

It occurs anywhere on the production possibilities frontier or on the inside of the frontier.

Therefore, the correct option is (a).

5 0
3 years ago
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