Answer: a. When inventory purchase costs are rising.
Explanation:
Last In First Out is an inventory stock valuation method where newer inventory is sold first and older inventory are sold last.
When a LIFO liquidation occurs, it means that the company has sold off its new stock and are now selling the older one.
This will lead them to have a lower cost of goods sold as the older stock is usually cheaper. If Inventory purchase costs are increasing in the market, then sales prices will have to increase as well. The company will sell at this new price but will still have that lower cost of goods sold.
This means that they would have more profits as a result which will lead to more taxes being charged on them.
Answer: $12,000
Explanation:
The question makes no sense in one area. The loss probability for $0 cannot be 90% because the other two are collectively 20%. I shall therefore assume that the loss probability for $0 is 80% so that they add up to 100%.
Expected claim cost = ∑[loss probability * (Loss - Deductible)]
= 0.9 * 0 + [0.15 * (10,000 - 10,000)] + [0.05 * (250,000 - 10,000)]
= $12,000
Answer:
asset distribution preference
Explanation:
In such a situation the preference or privilege that would be best for you is known as asset distribution preference or liquidation preference. This is a clause that dictates that the payout in case of a corporate liquidation (such as when they are about to go bankrupt) must first go to the preferred stockholders in order for them to get their money back first. Therefore, since you are a preferred stockholder this would be the biggest privilege for you, allowing you to recover your money quickly and move on to something else.
Answer:
Option A will be the correct answer.
Explanation:
In the above question, Options are not given. Please find the attachment of the complete question.
- RIA has become an individual or an organization that offers investment advice to high-net-worth investors as well as operates financial investments.
- This RIA rendered complete transparency, both oral and written form, to his shareholders, because of options techniques to be implemented and the fees associated. This would be the smartest method to do something about it.
Some other options are also not tied to the condition in question. Thus option A should be the perfect approach.
The correct answer to this question is letter "c. it provides a means for comparing the values of goods and services." The statement that correctly defines money as a unit of account is that <span>it provides a means for comparing the values of goods and services.</span>
