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frozen [14]
3 years ago
15

The gross profit method of inventory valuation is not valid when a. there is substantial increase in the quantity of inventory d

uring the year. b. there is substantial increase in the cost of inventory during the year. c. the gross margin percentage changes significantly during the year. d. all ending inventory is destroyed by fire before it can be counted.
Business
1 answer:
lukranit [14]3 years ago
6 0

Answer:

The gross profit method of inventory valuation is not valid when

c. the gross margin percentage changes significantly during the year.

Explanation:

Gross Profit Method:

It is such method that is used to determine the value of ending inventory in a specific period.

  • The option a, b and d are valid as this method is used when there is substantial increase in the quantity of inventory or in the cost of the inventory during the year. Moreover, it is also used to calculate the amount of ending inventory that is effected by a disaster such as fire, theft etc.
  • The option c is not valid because it is not used when the gross margin percentage changes significantly during the year as gross profit method is only used to determine the amount of an ending inventory.

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Answer:

Out of $15,000, the $13500 will be paid to preference stockholders and the remaining $1500 will be paid to equity stockholders

Explanation:

Given the information:

Rachel's Designs has 1,800 shares of 5%, $50 par value

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For computing the preferred dividend, first we have to find out the yearly dividend which is shown below:

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So, for the common stockholder, it is

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Neporo4naja [7]

Answer:

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Since the mid-1940s, the United States has experienced several boom and bust cycles. Why do we have a boom and bust cycle instead of a long, steady economic growth period? The answer can be found in the way central banks handle the money supply.

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3 years ago
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vagabundo [1.1K]
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Answer:

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