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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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Prepare journal entries to record the issuance of the bonds and the retirement of bonds. (Show computations and round to the n..

Vikentia [17]

Answer:

issuance entry:

cash 2,850,000 debit

discount on BP 150,000 debit

bonds payable 3,000,000 credit

--to record issuance--

bonds payable 600,000 debit

loss on redemption 30,000 debit

interest expense 56,250 debit

cash 662,250 credit

discount on BP 24,000 credit

--to record redemption ---

Explanation:

proceeds at issuance : $3,000,000 x 95/100 = 2,850,000

the difference will be the discount.

Now, when the bonds are retired we have to check the weight:

3,000,000 --> 120,000

600,000 --> 120,000/3,000,000 x 600,000 = 24,000

cash outlay 600,000 x 101/100 = 606,000

loss redemption

we pay 606,000

for bonds which are worth: 600,000 - 24,000 = 576,000

The loss is the difference.

then, we calcualte the accrued interest:

principal x rate x time

3,000,000 x 7.5% x 3/12 = 56,250‬

this will be an interest expense

as well as an additional cash outlay

5 0

4 years ago

Which of the following conditions exists when data are isolated in separated information systems?

sineoko [7]

Information overload.A.

4 0

3 years ago

The deadweight loss from a tax per unit of good will be smallest in a market with a. inelastic supply and elastic demand. b. ine

deff fn [24]

The deadweight loss from a tax per unit of good will be smallest in a market with inelastic supply and inelastic demand.

The Deadweight loss refers to loss that occurs when supply and demand are not in equilibrium and thus, result in market inefficiency.

Usually, the value of the deadweight loss varies with the demand elasticity and supply elasticity.

So, when the demand or supply is inelastic, the deadweight loss of the taxation will be smaller because the quantity bought or sold varies less with price.

Therefore, the answer is B. because the deadweight loss from a tax per unit of good will be smallest in a market with inelastic supply and inelastic demand.

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brainly.com/question/13719669

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3 years ago

You are attending college in the fall and you need to purchase a computer. You must finance the purchase because your parents wi

rodikova [14]

The correct answer is installment credit. The explanation is below.

Installment credit allows you to purchase an item and then pay for it in installments. The reason that this would be the best option for you is that you do not have the money now to make the purchase, but you are able to make smaller monthly payments in order to purchase a computer.

Installment credit is better than revolving credit for new borrowers. Revolving credit would allow you to charge additional purchases on your revolving credit account. The installment plan only finances one item, rather than like a credit card, which is how revolving credit works. You would not choose non-installment credit because this would require you to make this payment all at once in a short period of time. It would not allow you to spread the payments out over time.

3 0

3 years ago

Which of these purchases is more likely to be paid for with a credit card?

patriot [66]

I got A too hope this helps

7 0

3 years ago

Read 2 more answers