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3 years ago

If a company uses LIFO, a LIFO liquidation causes a company's income taxes to increase:_______

Business

1 answer:

olasank [31]2 years ago

4 0

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.

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When inflation was expected to be high and it turns out to be low, wealth is redistributed from debtors to creditors. / true or

alexandr402 [8]

Answer: True. When inflation was expected to be high and it turns out to be low, wealth is redistributed from debtors to creditors.

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2 years ago

Which of the following is an example of public relations?

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3 years ago

Able Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay

faltersainse [42]

Answer:

Explanation:

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3 years ago

Concord Co. had sales revenue of $555,600 in 2020. Other items recorded during the year were: Cost of goods sold $320,200 Salari

NARA [144]

Answer:

Concord Co.

Income Statement

For the Year Ended December 31, 2020

Revenues:

Sales revenue $555,600

Expenses:

Cost of goods sold ($320,200)

Salaries and wages expense ($120,100)

Other operating expenses ($11,210)

Income tax expense ($25,590)

Net income: $78,500

Earnings per share: $0.74

Increase in value of company reputation and unrealized gain on value of patents are not included in this income statement.

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3 years ago

Unit cost of materials for a department using the FIFO method of process costing is found by taking the total cost of materials

Brrunno [24]

Answer:

b. equivalent units of output.

Explanation:

In the production process there are various kind of inventory, that is raw material inventory, work in process and then the finished inventory.

Thus, there is this equivalent units concepts which calculates the completed units that would have been produced in case of no work in process.

Thus, when we use FIFO method and we want to calculate the unit cost of materials assuming inventory of raw material is also added in stages rather than completely adding it as a first step itself, the correct equation = Total cost of materials/equivalent units of output.

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3 years ago