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4 years ago

Which of the following statements is correct? Multiple Choice

Business

1 answer:

nikitadnepr [17]4 years ago

4 0

Answer: D -LIFO results in a higher net income than FIFO when costs are falling.

Explanation:

The LIFO and FIFO are methods of accounting for inventory.

LIFO means last in, first out. It means the last inventory purchased is the first inventory sold.

FIFO means first in,first out. It means older inventories are sold off first.

During period of rising prices, LIFO results in lower net income because the Cost of Goods Sold is higher. Inventories cost more during periods of rising prices.

When prices are falling , the LIFO method results in a lower cost of goods sold and therefore a higher net income.

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A company offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of th

kozerog [31]

Answer: C. The employees will receive a share of profits as part of the company's ESOP.

Explanation:

The retirees can still get a portion of profits if they are part of an Employee Stock Ownership Plan.

ESOP is a pretty standard thing these days with companies where they reward their employees with shares in the company.

Seeing as the company is making too little to be able to keep paying Retirement benefits, the retirees being owners of Stock can still partake in the earnings that the company makes when they distribute dividends.

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4 years ago

Starbucks discovered through marketing research that 30% of consumers buy over 90% of all coffee drinks. If Starbucks used this

ser-zykov [4K]

Answer: Objective and Specific

Explanation:

According to the given scenario, the Starbucks is basically analyzing the market segments by using the proper marketing search process and it using the objective and the specific base of the segmentation for evaluating the each segments in the given data.

The main component of the segmentation is the objective that helps in reducing the overall risk in the decision process and also increase the overall efficiency of the product in the market.

Therefore, Objective and Specific is the correct answer.

4 0

3 years ago

Corristan Company purchased equipment and incurred these costs: Cash price $24,000 Sales taxes 1,200 Insurance during transit 20

galben [10]

Answer:

$25,400.

Explanation:

International Accounting Standard 16 states that any Property, Plant, and Equipment should be initially recognized at a cost that includes all the costs that are necessary to bring the asset to its working condition. Example of such costs include:

- Purchase Price.

- Delivery Charges.

- Sales Taxes Paid, if any.

- Deduct Discounts, if any.

- Installation Costs.

- Dismantling Cost.

- Any other Directly Attributable Costs.

The standard further states that any periodic cost should be written-off to Profit or Loss as incurred. Such costs include Maintenance Costs. These are the costs that are not necessary to bring the asset to its intended use.

So in this case, the cost that should be capitalized is $25,400 (24,000 + 1,200 + 200).

Note: The insurance costs of $400 has been capitalized because it was incurred for Transit Purposes and before the asset was prepared for use.

5 0

3 years ago

Be honest !

Katarina [22]

Answer:

15 and I lost it but not by choice

6 0

3 years ago

Read 2 more answers

Ron Santana is interested in buying the stock of First National Bank. While the bank expects no growth in the near future, Ron i

algol13

Answer:

$38.375

Explanation:

In this question, we apply the Gordon model which is shown below:

Maximum price = Next year dividend ÷ (Required rate of return - growth rate)

= $6.14 ÷ 0.16

= $38.375

We simply divide the dividend rate by the required rate of return so that the accurate and maximum price can come. The growth rate is not given so we do not consider it.

4 0

4 years ago