Complete question:
amber is in charge of preparing an annual budget for her company. as part of the budgeting process, she must estimate COGS and ending inventory. which of the following statements is correct regarding the use of the gross profit method
amber must take a physical inventory to determine ending inventory and COGS
amber may utilize the gross profit method, but must also take a physical inventory
amber may utilize the gross profit method to estimate ending inventory and COGS
Answer:
Amber may utilize the gross profit method to estimate ending inventory and COGS
Explanation:
The gross profit method is a strategy used to measure the value at the end of the product. The method may be used with monthly accounting statements where a physical warehouse is not feasible.
(However, it is not a substitution for an actual physical inventory.) It is often used to measure the volume of lost products incurred by burglary, accident or other disasters.
For example, if a business buys products of $80 and sells them for $100, the gross profit is $20.
<span>The answer is 1.43 % per day.
Calculations:
Formula for simple interest: I=PRT, where I=interest; P= borrowed amount; R=rate of interest in percentage; T=time for repayment
hence; P=$300, I=$60, T=14 days, then R=?
R={(I/PT) *100)}% per day={(60/300*14)*100}=1.43 % per day
interest rate (R) that Fred was charged for the aforementioned loan was 1.43 % per day</span>
Answer:
(D) non-current asset and reported under Investments
Explanation:
The total assets comprise of current assets, fixed assets, and the intangible assets
The current assets include cash, stock, account receivable, etc
which is up to one year
Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.
And, the intangible assets include patents, copyrights, goodwill, etc.
The fixed assets and the intangible assets have life for more than one year like 5 to 6 years or even more.
In the given question, the collection is made for other receivable which is to be reported under investments and considered as a non-current asset
Answer:
The Check Number
Explanation:
The check number is the sequential numbering of the number of checks which the bank has issued to its customer, so that both the bank and the issuer can keep track of the checks. It is also helpful in recording of the checks in the books of accounts and in bank reconciliation to reconcile the bank balance as per the books of accounts with the balance as per the bank statement.
