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Alenkinab [10]
3 years ago
14

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

Business
1 answer:
olasank [31]3 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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Which of the following is true? Group of answer choices The price of gold increases when the economy is stable The DJIA is the c
andrey2020 [161]

Answer:

Which of the following is true?

a)The price of gold increases when the economy is stable

b)The DJIA is the cost of capital for U.S companies

c)NASDAQ index focuses on large cap stocks and the energy sector

d)The commodities market is the largest market in the world

e)The 30-yr Treasury yield is the base cost of capital for U.S companies

Answer = E

Explanation:

U.S treasury yield represents the risk free rate demanded by investors because its assumed that U.S is risk free, so for companies in the U.S looking for capital over a long period of time the usual use 30-yr Treasury yield as their cost of capital because its represents what they could have invested their funds in at no risk.

8 0
3 years ago
Net cash flow from operating activities for 2021 Altoona Corporation was $300,000. The following items are reported on the finan
ololo11 [35]

Answer:

Altoona’s Net Income for 2021 was:  $296,000

Explanation:

The Net Income can be determined by reconciling the Net cash flow from operating activities to Operating Profit as follows :

Net cash flow from operating activities    $300,000

Less Depreciation and amortization          ($24,000)

Add  Increase in accounts receivable        $20,000

Operating Profit                                          $296,000

Notes :

Reconcile the non-cash items previously added or deducted from Net cash flow from operating activities and any changes to Working Capital accounted for in determination of Net cash flow from operating activities .

4 0
4 years ago
Melanie is having a lot of financial problems. she is drowning in debt and needs help. she is looking for an organization to hel
hjlf

A sign of a reputable organization is They disclose your rights clearly and share with you free assistance that may be useful to you.

<h3>What are the five signs of a good organization?</h3>

Effective Sharing of Goals. A beneficial organization shares its business goals with employees at every level of the organization.

  • Great Partnership.
  • High Employee Morale.
  • Offers Internship Opportunities
  • Strong Leadership
  • Drives Poor Performance.

<h3>What makes a good organization?</h3>

Influential organizations create results, and to be fully effective, nonprofits must exhibit strengths in five core administrative areas—leadership, decision making and structure, people, work methods and systems, and culture. "Too many people are interested in every decision."

To learn more about reputable organization , refer

brainly.com/question/1382377

#SPJ4

8 0
2 years ago
Which one of the following correctly describes the dividend yield? Multiple Choice Next year's annual dividend divided by today'
Debora [2.8K]

Answer:

Next year's annual dividend divided by today's stock price

Explanation:

Dividend yield is a financial ratio which is used by investors to assess a company's annual dividend payout in comparison of its stock price. The formula for dividend yield ratio is :

Annual dividend / Stock price

The annual dividend used is the most recent dividend paid or is to be paid to shareholders of the company. It enables investors to assess the return on their investment in each stock price. Dividend yield increases when companies pay more dividends. It is a good signaling effect for shareholders.

4 0
4 years ago
The problem with adopting a fair-return pricing policy for a natural monopoly is that Multiple Choice economic profits will be p
ASHA 777 [7]

Answer:

it is not allocatively efficient

Explanation:

Monopoly is a market condition where one seller has all the market share. This leads to an inefficient market structure, an increase in the prices of goods and services and abnormal profits. A problem with adopting a fair return polity for a natural monopoly is that it is not allocatively efficient. In a monopoly, goods and services are not produced to help the economy or people.

7 0
3 years ago
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