Answer:
C
Explanation:
Down payment is something that you pay upfront before getting anything.
Answer:
LIFO
Explanation:
It will be the one that give higher Cost of goods sold. We also know that:
Cost of goods sold = Opening Inventory + Inventory Purchases - Closing Inventory
So this means the lower the closing inventory the higher the cost of goods sold and in time of price increases it will be more appropriate to use LIFO method which will reduce the Closing Inventory and this will increase the cost of goods sold and thus decrease in profit. This reduced profit means that the tax expense will also be lower in value.
Similarly the second attractive option will be the Weighted Average and the least attractive option would be FIFO costing method.
Try using this website:
https://smallbusiness.chron.com/10-important-business-objectives-23686.html
Answer:
True
Explanation:
When a company successfully offers a product or few products to customers, it tends to expand the range of products it has to offer.
For a <u>company to increase its range of products successfully, it has to realize that it must make corresponding changes to its processes to accommodate the addition of new products.</u>
However <em>oftentimes, companies do not make the necessary changes to their process strategy when expanding their product offerings.</em>
Answer:
C. The lessee is not expected to exercise the option to purchase the leased asset.
Explanation:
On January 1, Year 5, Company A leased a customized forklift to Company B (lessee) for a lease term of 10 years. The lease includes an option for the lessee to purchase the leased asset at the end of the lease term. The expected residual value of the forklift at the end of Year 10 is minimal and is not guaranteed. The present value (PV) of the sum of the lease payments is $70,000. Company A has classified the lease as a sales-type lease. Which of the following is not a criterion for the lessor to classify the lease as a sales-type lease?
A. The forklift is expected to have no alternative use to Company A at the end of the lease term.
B. The forklift’s remaining economic life is 11 years on the lease commencement date.
C. The lessee is not expected to exercise the option to purchase the leased asset.
D. The fair value of the forklift at the time of lease commencement is $75,000
A lease in a contract agreement in which the lessee pay the lessor after the use of an item such building, equipment, vehicle, etc. It is a contractual agreement between two people.
Sales type lease is a lease in which the price of the leased property at the beginning is different from the carrying amount and ownership is given back to the lessor at the end of the lease period. This type of lease exists when (a) the lease is not classified as operating and (b) the lessor gets both interest income and a profit (or loss) on the transaction. Therefore, the fair market value of the leased asset is more than the lessor’s cost to purchase the asset.
