Answer:
The answer is B.
Explanation:
FIFO inventory cost method will yield the highest taxable income during times of inflation or period of rising price.
FIFO is First in First out i.e the inventory that was purchase first will go out first. This method reflects the current market price because last inventories bought during inflation are part of the ending inventories. Ending inventories are high, cost of sales are low and gross profit is high.
Because gross profit is high, high tax will be charged
Whether it is a case of external or internal economies of scale:
A. A number of firms doing contract research for the drug industry are concentrated
Larger changes within the industry lead to external economies of scale, so as the industry expands, the average cost of doing business decreases.
when external economies of scale exist?
External economies of scale take place when an industry as a whole expands and businesses profit from lower long-term average costs. External economies of scale are also known as advantageous external outcomes of industrial development.
An external economy of scale is shared by competitors, internal economies of scale provide larger competitive advantages.
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Disclosed a contingent liability based on a pending lawsuit the cash flows from operating activities will remain the same.
Disclosed a contingent liability based on a pending lawsuit the cash flows from operating activities will remain the same as contingent liability is recorded as footnotes to financial statements. They have no cash flow till the period the event occurs of which they are contingent.
Operational enterprise activities include inventory transactions, interest payments, tax payments, wages to personnel, and payments for rent. some other shapes of cash flow, which include investments, money owed, and dividends are not included in this phase.
A contingent liability is a liability that may or might not occur. This means the contingent legal responsibility will rely on destiny events. Long-time liabilities are predicted to pay through the years or the timeframe is extra than 12 months. However, short-term liabilities are predicted to pay within a year.
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Answer:
The correct answer is letter "B": may be used for various general ledger accounts.
Explanation:
Subsidiary ledgers are used in the record-keeping of large companies when transactions of an account should be reported in detail but the information size is overwhelming. Usually, subsidiary ledgers are implemented in sales firms. The subsidiary ledger is part of a general account that is frequently posted so only general precise information is recorded in the general account.
<em>Examples of subsidiary ledgers are Accounts Payable Ledger, Accounts Receivable Ledger, Purchases Ledger, and Inventory Ledger just to mention a few.</em>
Answer:
A. central
Explanation:
The central banking system of America or the Federal Reserve System was created in December 1913, through the enactment of the Federal Reserve act. It was founded by the Congress to provide a stable, safe, and flexible financial and monetary system. The formation of the central banking system was brought about by the desire to have control of the monetary system to alleviate financial crises.
The central banking system performs various functions that are significant to the economic stability and growth in the US. A few of those functions include.
- Implement monetary polices to influence stable prices, achieve target unemployment and inflation rates.
- Regulating and supervising commercial bank activities in the US.
- Providing a secure and safe payment system in the country
- Acts as the lender of the last resort
