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4 years ago

Question 4 of 10

Business

1 answer:

balu736 [363]4 years ago

7 0

Answer:

B. It allows people to buy, sell, and trade goods efficiently.

Explanation:

Medium of exchange refers to an intermediary instrument used to facilitate trade or the transfer of goods and services between parties. An item must be acceptable by the parties involved in the transaction to be used as a medium of exchange. It should represent a fair standard of value.

Money is the most widely used and accepted medium of exchange. It facilitates an easy and quick transfer of goods and services between buyers and sellers. Without money, the selling of goods and services would be conducted on barter trade. Money as a medium of exchange facilitates smooth transactions in business.

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When using the allowance method, the adjusting entry to record estimated bad debt expense includes a ______. (Check all that app

Naddika [18.5K]

It should be noted that When using the allowance method, the adjusting entry includes a credit to Allowance for Doubtful Accounts debit to Bad Debt Expense.

<h3>What is allowance method?</h3>

The allowance method can be regarded as a method which involves setting aside a reserve for bad debts which could come up in the future.

The reserve is done on percentage of the sales generated in a reporting period,

Learn more about allowance method at;

brainly.com/question/4636062

5 0

3 years ago

On March 1, Coronado Industries began construction of a small building. Payments of $814800 were made monthly for three months b

coldgirl [10]

Answer:

The weighted-average accumulated expenditures = $407400

Explanation:

The weighted-average accumulated expenditures = $814800 (3/12 + 2/12 + 1/12) = $814800 (6/12) = $407400

4 0

3 years ago

Lambert Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purc

svetoff [14.1K]

Answer:

Fifo Inventory $665

Moving Average= $ 606

Lifo Inventory $ 592

Explanation:

Purchases

Date Units Unit Cost Sales Units Fifo Inventory

July 1 13 $115

July 6 9

4 $115 $460

July 11 6 $122

July 14 6

4 $122 $488

July 21 7 $132

July 27 6

5 $ 133  $665

Moving Average Method

= Total Cost of Purchases/ No of items= 13*115 + 6*122+ 7*132/13+6+7

= 1495+ 732+ 924/26= 3151/26= 121. 192

No of units in the Ending Inventory= 5 * 121.192= $ 605.96

Purchases

Date Units Unit Cost Sales Units Lifo Inventory

July 1 13 $115

July 6 9

4 $115 $460

July 11 6 $122

July 14 6

4 $115 $460

July 21 7 $132

July 27 6

1 132 $132

4 $ 115 $460

5  $ 592

6 0

4 years ago

All of the following are reasons to use an estimated method of costing inventory except: A. perpetual inventory records are not

morpeh [17]

Answer:

The answer is: B) purchase records are not maintained.

Explanation:

There are two methods for estimating inventory costs:

Gross Profit Method : uses the information from the income statement. If operating conditions remain similar, the proportion between total sales, profits and COGS should be similar (lets say profit is 30% and COGS is 70% of total sales). You can estimate your inventory costs by using the information on total sales.
Retail Method: It is used mostly by merchandising firms (retailers) that have consistent mark-ups. You have to determine the proportion between cost and retail price (lets say the COGS is 80% of the retail price). Then if you are given the retail inventory, you can determine the COGS using the proportion determined previously.

8 0

4 years ago

A purpose of the Core Inflation Index is _______________. Select the correct answer below: to help consumers understand the over

8090 [49]

Answer:

to be a gauge from which to make important government policy changes.

Explanation:

Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.

Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.

Furthermore, when this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.

Core Inflation Index can be defined as a measure of the change in the price (cost) of goods and services over a specific period of time but excluding the products or items from the energy and food sector. The energy products and food items are excluded because they're transitory i.e having temporary price volatility and as such making their prices change easily.

In Economics, some of the common ways to measure the rate of inflation in a country is through the consumer price index (CPI), gross domestic product deflator (GDP Deflator), personal consumption expenditures price index (PCEPI), employment cost index (ECI), producer price index (PPI), etc.

Hence, a purpose of the Core Inflation Index is to be a gauge from which to make important government policy changes that would have a significant effect or impact on the lives of the citizens of the country.

4 0

3 years ago