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3 years ago

FIFO and LIFO are two common methods used to compute the depreciation of tangible assets. True or false?

Business

1 answer:

IgorLugansk [536]3 years ago

7 0

Answer:

The statement is false

Explanation:

The statement is false as the both the methods that is LIFO and FIFO are the methods of inventory valuation, not for computing the depreciation.

As LIFO (Last in first out), this method involves the inventory which is purchased last is expensed first whereas FIFO (First in first out), this method of inventory valuation, involves the inventory in which the inventory which is purchased first is expensed first.

For computing the depreciation for the tangible assets involves straight line, diminishing or double declining methods.

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During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pr

ANEK [815]

Answer:

Fixed costs= 1,100,000

Explanation:

Giving the following information:

During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pretax income was $400,000.

We need to reverse engineer the income statement to determine the total fixed costs. We know that the pretax income is the difference between the total contribution margin and the fixed costs.

Pretax= total contribution margin - fixed costs

400,000= 1,500,000 - FC

Fixed costs= 1,500,000 - 400,000

Fixed costs= 1,100,000

5 0

3 years ago

A company reports the following information for the year: Net credit sales $ 120,000 Average accounts receivable 20,000 Cash col

Alborosie

Answer:

receivable turnover ration = 6

Explanation:

credit sales = 120000

Credit sales =As we know that: Receivables turnover ration = Net credit sales /Average account receivable.

= 120000/ 20000

= 6.

it indicates that company convert its receivable to cash 6 times that year.

7 0

3 years ago

Mandarinka [93]

Answer:

What I feel would be appropriate to be delivered electronically:

- Sending Daily report

- Requesting invoice for petty cash

- Working schedule

- Creating list of tasks.

I think every activities that does not necessarily need a lot of human communication should be delivered electronically . it just safe a lot of time and make it accessible anywhere you want.

What i feel would be better delivered in traditional setting:

- Brainstorming

- Firing people

I believe group brainstorming will be more efficient if team members spare their time to gather together in a private setting and focus on doing so. Doing it electronically will make it hard to communicate and some team members might not focusing on the task.

Firing people also should be done face-to-face. Even though this person is about to be kicked out of the team, we need to know that we appreciate what they've done to the team. Firing using electronic media just seems cold and impersonal.

5 0

3 years ago

Ryan estimates that he drove approximately 2,260 miles on business trips, but he can only provide written documentation of the b

tester [92]

Answer: $1,355.41

Explanation:

Business expense deductible:

= Adjusted Cost of gasoline + Depreciation

As Ryan can only provide documentation for 1,300 miles, this is what the deductible will be based on:

= (Cost of gasoline * Documented miles for business / Estimated miles for business) + (Depreciation * Documented miles for business / Total miles travelled)

= (1,920 * 1,300 / 2,260) + (3,900 * 1,300 / 20,200)

= $1,355.41

3 0

3 years ago

Indigo Company invests $11,700,000 in 4% fixed rate corporate bonds on January 1, 2020. All the bonds are classified as availabl

IceJOKER [234]

Answer:

a. Indigo do not elect fair value option

Journal entries

Date Description DR CR

2020

Jan 1 Bonds-available for sale asset $11,700,000

Cash book 11,700,000

Being the amount paid on acquisition

Dec 31

Interest receivable (4%*11,700,000) 468,000

Income statement 468,000

Being the interest due on the bond at the year end

b. Indigo elect the fair value option

Date Description DR CR

2020

Jan 1 Bond-available for sale asset 11,700,000

cash book 11,700,000

Being the amount paid on acquisition

Dec 31 Interest receivable 468,000

Income statement 468,000

Being the interest due on the bond at the year end

Dec 31 Bond 687,000

Revaluation surplus 687,000

Being the excess of fair value over the book value

Explanation:

3 0

3 years ago