1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Svet_ta [14]
3 years ago
9

Which statement is true about the gross profit method of inventory valuation?

Business
1 answer:
Travka [436]3 years ago
6 0

Answer:

b. It may be used to estimate inventories for interim statements.

Explanation:

As we know that

Gross profit = Sales - the cost of goods sold

By doing the inventory valuation through the gross profit method, it estimated inventories for interim statements as these statements are covering the financial information that is less than a year so that the proper analysis could be made and in this, no auditing is required.  

Therefore, for interim statements, the gross profit method is required.  

 

You might be interested in
Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 3%. The
ASHA 777 [7]

Answer:

Value of treasury Note =$ 746,617.36  

Explanation:

<em>The value of the notes is the present value of future cash flow discounted at its YTM of 11%.  The value of the Note is the present value of the future cash receipts expected from the it.</em>

The value is equal to present values of interest payment and the redemption value (RV).  

Value of Notes = PV of interest + PV of RV  

The value of Note can be worked out as follows:  

Step 1  

Calculate the PV of Interest payment  

Present value of the interest payment  

PV = Interest payment × (1- (1+r)^(-n))/r  

r-Yield to Maturity, n- number of years

Interest payment = 3% × $1,000,000 × 1/2= $15000 .

Semi-annual interest yield = 11%/2 =5.5%

PV = 15,000 × (1 - (1.055)^(-3×2)/0.055) =

Step 2  

PV of redemption Value  

PV of RV = RV × (1+r)^(-n)  

= 1,000,000 × (1.055)^(-4×  2)

=  651,598.87  

Step 3  

Calculate Value of the Notes

= 95,018.49   +  651,598.87  

= $ 746,617.36  

Value of treasury Note =$ 746,617.36  

8 0
3 years ago
F a worker is free to quit a job and find a new job at another place of employment, what us economic goal has been met?
Vika [28.1K]
A I believe. Hope this is helpful
4 0
3 years ago
After saving money in his piggy bank for three years, Omar decided to deposit $2,500 of the money in the local bank. If the bank
NeTakaya

Answer:

The money supply will increase by 12,500 dollars

Explanation:

when the money is deposited the loan will make the required reveneus and start loans for the remained over and over

The multiplier effect will be 1/required reserve ratio: 1/0.2 = 5

we multiply 2,500 dollars times the money multiplier of 5

total icnrease inthe money supply: 2,500 x 5 = 12,500

5 0
3 years ago
Clip Joint company is ready to sell its bonds. Which of the following financial questions is most relevant to the issue of the b
lord [1]

Answer:

(C) How much debt does clip joint company already have?

Explanation:

Bond investors are more likely to ask a bond issuer (the company issuing the bonds) its current level of debt before investing. This information is important as it informs the order that the current bond holders will occupy in a repayment hierarchy if the company was unable to pay back the debt and it needs to be liquidated.

7 0
3 years ago
Given the following demand and supply equations determine the market equilibrium price and quantity. QD=30-3p. As=10-5p. Where Q
pochemuha

Answer:

Equilibrium price, p = 2.5

Equilibrium Quantity, Q = 22.5

Explanation:

The equation is:

Qd = 30 - 3p

Qs = 10 + 5p

At equilibrium, Quantity demanded equals quantity supplied

Equate Qd = Qs to find equilibrium price

30 - 3p = 10 + 5p

30 - 10 = 5p + 3p

20 = 8p

p = 20/8

P = 2.5

Substitute equilibrium price into Qd and Qs equation to find equilibrium Quantity

Qd = 30 - 3p

= 30 - 3(2.5)

= 30 - 7.5

= 22.5

Qs = 10 + 5p

= 10 + 5(2.5)

= 10 + 12.5

= 22.5

Therefore,

Equilibrium price, p = 2.5

Equilibrium Quantity, Q = 22.5

4 0
2 years ago
Other questions:
  • Bernie's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Bernie
    12·1 answer
  • Which of the following is LIKELY to have the biggest strategy-shaping impact on on-demand transportation providers such as Uber
    8·1 answer
  • By offering a menu of policies with different premiums and deductibles, insurance companies can _____ their customers; for examp
    8·1 answer
  • North Company has completed all of its operating budgets. The sales budget for the year shows 50,160 units and total sales of $2
    5·1 answer
  • _____ involves determining, through observation and study, the specific tasks that comprise a job and the knowledge, skills, and
    7·1 answer
  • "the aggregate demand curve is the sum of all demand curves of all goods and services in the economy"
    12·1 answer
  • How much money does a teacher make
    10·1 answer
  • Last night 45,000 people bought 6,000 shirts. The shirts cost $8.00 dollars each. How much did they spend all togther?
    12·2 answers
  • According to the cross-price elasticity of demand, when the price of DVD players drops, the demand for DVDs is likely to
    5·1 answer
  • Think of a scene from a popular movie that shows an involuntary exchange (where a buyer or seller is forced to participate). Ide
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!