A drop in interest will result in lower payments because of its overall discretion value
Answer:
A. In a situation where prices are declining, companies using LIFO will report the smallest cost of goods sold.
- This is because LIFO calculates goods sold as Last in, First Out. And since the cost is declining, the last in inventory will have the smallest cost of goods sold.
C. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold.
- Whether the cost of goods are rising or falling, this will always be the case.
D. Companies using LIFO will pay higher taxes than companies using FIFO, assuming all else being equal.
- This is because when using LIFO in this scenario, higher profits would be recorded and the tax is paid on profit, thus higher taxes.
F. Companies using LIFO will report the highest ending inventory on their balance sheets (as compared to companies using FIFO or weighted average,)
- This is simply because in this scenario, the LIFO sold the cheaper goods first leaving an ending inventory of the relatively expensive goods unlike FIFO which would have sold the expensive first. Again, emphasis on this scenario of declining cost.
If a company uses $1,600 of its cash to purchase supplies, the effect on the accounting equation would be one asset increases $1,600 and another asset decreases $1,600, causing no effect.
<h3>What is an accounting equation?</h3>
The relationship between a person's or company's assets, liabilities, and owner's equity are represented by the basic accounting equation, often known as the balance sheet equation. It serves as the system's cornerstone. The sum of the debits and credits for each transaction is equal.
Stockholders' equity is referred to as capital in corporations. Since every business transaction impacts at least two accounts, the accounting equation will always be "in balance," which means the left and right sides of a company's balance sheet should always be equal.
To know more about accounting equations visit:- brainly.com/question/14689492
#SPJ4
Answer:
The correct answer is C. A difference between the economic long run and the short run is that demand can affect output and employment in the short run, whereas supply is the ruling force in the long run.
Explanation:
In economics, the long run is the conceptual time period for which we have no fixed factors of production. In contrast to the long run, in the short run we have some variable and some fixed factors, relative to the chosen level of production. In the long run, companies change production levels in response to economic profit or loss, and land, labor, capital goods, and entrepreneurship vary to reach the corresponding level of production associated with long-term equilibrium.
