Answer:
First In, First Out (FIFO).
Explanation:
FIFO is an acronym for "First In, First Out" and it assumes oldest unit of inventory is sold first, meaning goods that were first added to inventory are the first goods removed from inventory for sale and are recorded as sold first.
FIFO can be defined as an accounting methods used in managing costs related to inventory, stock repurchases at different times and financial activities associated with monetary costs a company had tied up within inventory of feedstocks, raw materials, produced goods, and equipment parts.
Simply stated, FIFO is an accounting methods used for the valuation of the cost of goods sold and ending inventory of a company.
In a period of rising prices, the inventory method which tends to give the highest cost of goods sold value is First In, First Out (FIFO). This is because the more recent costs represent the higher (rising) net income and a higher (rising) inventory valuation costs.
Answer:
<u>Allocative efficiency </u>
Explanation:
Marginal benefit refers to the extra satisfaction derived from purchase of an extra unit of a good or a service.
Marginal cost refers to the extra cost incurred when an additional unit of a good or a service is produced.
When marginal cost is equal to the marginal benefit, it is the most efficient situation wherein optimal blend of commodities is produced.
Allocative efficiency refers to producers providing that blend of goods which are most desired by the society at the optimal level of production.
Answer:
increase the money supply by $5 billion
Explanation:
When the Fed carries on an expansionary monetary policy it lowers interest rates and purchases government securities in order to increase the money supply in an attempt to boost economic growth.
The increase in the money supply is determined by the total amount of the open market operations carried out by the Fed ($1 billion) and the money multiplier (= 1/reserve ratio = 1/20% = 5).
Total increase in money supply = $1 billion x 5 = $5 billion
Answer:
Explanation:
Journal Entry : The Journal entry shows the recording of the transactions which records debit and credit side of the transaction.
The debit side records all expenses and losses of the company whereas credit side records all income and gains of the company.
Since the office supplies purchased at $8,000 but at the end of the year the $3200 is still on hand. So, the remaining balance is $4,800 is should be recorded at the end of the period.
So, the Journal entry for adjusting office supplies account is :
Office supplies expense A/c Dr $4,800
To Office Supplies $4,800
(Being office supplies account adjusted)
Since the office supplies is purchased which become an expense for a company that's why it is debited with regard to office supplies account.
Answer:
Dividends paid ⇒ Financing Activities (F)
Repayments of long term debt ⇒ Financing Activities (F)
Depreciation and amortization ⇒ (NA)
Proceeds from issuance of common stock to employees ⇒ (NA)
Change in accounts payable and accrued expenses ⇒ Operating Activities (O)
Cash collections from customers ⇒ Operating Activities (O)
Net repayments of notes payable to banks ⇒ Financing Activities (F)
Net income ⇒ Operating Activities (O)
Payments to acquire property and equipment ⇒ Investing Activities (I)
Change in inventory ⇒ Operating Activities (O)
