Answer:
A. 3,750 units.
Explanation:
Since the inventory level is planned in such a way that the ending inventory of finished goods for a specific month is always equal to 15% of the units which will be sold during the next month, therefore, the ending inventory for month of May will be equal to the 15% of units which will be sold in the month of the June and shall be determined as follow:
May Ending inventory=0.15*units to be sold in June
=0.15*25,000
=3,750 units
So based on the above discussion and calculations, the answer is A. 3,750 units.
The revised Code establishes a conceptual framework for all professional accountants to ensure compliance with the five fundamental principles of ethics:
Integrity.
Objectivity.
Professional Competence and Due Care.
Confidentiality.
Professional Behavior.
Answer:
(C) 110 days
Explanation:
The computation of the operating cycle is shown below:
= Average days of process from raw materials to finished products + another days before the finished goods are sold + average days of accounts receivable - average days of accounts payable
= 80 days + 40 days + 70 days - 80 days
= 110 days
While calculating the operating cycle we add the inventory days, accounts receivable and deduct the account payable days.
The statement is False as when the balance sheets for the two companies are submitted to investors, they are not obligated to disclose the same amount of net fixed assets.
The Property, Plant, and Equipment classification is used to categorize fixed assets on a company's balance sheet. The cost of fixed assets is decreased on the balance sheet by depreciating them over the course of their useful lives in order to account for wear and tear. Both firms started off with $1 million worth of identical fixed assets when they first opened their doors two years ago, and neither one has sold or added any new ones. So, they are not supposed to report the same amount of fixed assets to investors since there is an absence of asset purchases.
Both current assets and fixed assets are listed on the balance sheet, with current assets intended for use immediately or for cash conversion and fixed assets for longer-term usage (more than one year).
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Answer: Option B
Explanation:
A. Explicit cost are the cost paid to others in return of their service. Hence Option A is incorrect.
B. Revenue is the total amount of earnings a company have before deducting for expenses. Hence Option B is correct.
C. Accounting profit means (Revenue - explicit cost) . Hence Option C is incorrect.
D. Economic profit means (Revenue - explicit cost - implicit cost) . Hence Option D is incorrect.
