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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.  

 

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Brandon, an analyst at Agency A, rents a car at $40 per day. Due to a rental company discount, if a car is rented for 4 or more
4vir4ik [10]

Answer:

62.5%

Explanation:

In this example, Brandon rented the car for 6 consecutive days. This means that he was able to take advantage of the promotion. Therefore, he only paid for five days (got one day free) at a rate of $30 per day (as opposed to $40). Therefore, he paid:

$30 * 5 = 150

On the other hand, Whitney rented a car for three days. She did not qualify for the discount, which means that she paid for all her days, at a rate of $40 per day. Therefore, she paid:

$40 * 3 = 120

To obtain the average daily rate of each person, we would need to divide this final rate by the number of days each person used a car. That would look like this:

Brandon: $150 / 6 = $25

Whitney: $120 / 3 = $40

Therefore, when comparing these two numbers, we see that the average daily rate paid by Brandon is 62.5% percentage of the average daily rate paid by Whitney.

6 0
3 years ago
Inflation is a decrease in the average price level in the economy.
Rama09 [41]
This is false. When inflation happens, prices go up in the economy.
7 0
3 years ago
What type of experiences throughout life can help develop your abilities?
maksim [4K]
Being bullied to help you stand up to people and have more confidence

Losing something you love to teach you to cherish the small things

Losing things that you think aren’t that important to teach you how to care and be more respectful for the things you have that some people can’t

Friends to help you threw life and teach you new things that you never even knew about yourself

5 0
3 years ago
Suppose you win the Publishers Clearinghouse $10 million sweepstakes. The money is paid in equal annual end-of-year installments
Ludmilka [50]

Answer:

the actual worth today is  $5,124,150.29

Explanation:

The computation of the actual worth today is as follows:

= (Year end annual payments) ÷ (rate of interest) × (1 - (1 + rate of interest)^-time period

= ($333,333.33) ÷0.05 × (1 - (1 + 0.05)^-30

= $5,124,150.29

hence, the actual worth today is  $5,124,150.29

The above formula should be applied

7 0
3 years ago
You are a manager, and you believe that the expense reimbursement system for salespeople is far too slow, taking weeks instead o
Shtirlitz [24]

Explanation:

In this scenario, the ideal would be to write a persuasive request, where there is an objective and logical explanation about the observed problem, in the case of the question, about the slowness of the sellers' expenses reimbursement system.

The persuasive request must be written strategically to convince the recipients and draw attention to their point of view. It must also be written in a way that gives credibility to create interest and motivation for the acceptance of your request.

6 0
3 years ago
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