Answer:
Stock is valued at lower of : cost or market price [prudence principle]
Explanation :
Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.
This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.
Answer:
The correct answer is letter "B": record revenue only after you have earned it.
Explanation:
Revenue Recognition is an accounting term that describes how and when a company reports revenue in its ledger. It is also part of the Generally Accepted Accounting Principles (GAAP). Using the accrual accounting method, revenue must be recorded when it is earned not when the company collects the cash proceeding.
Answer:
The correct answer is True.
Explanation:
In the business world, the only good thing we can get out of the times of crisis is that they give you the opportunity to reinvent your company, products or services completely, whether it is to remain competitive or to survive.
The change may come due to crisis situations, the appearance of new competitors, changes in consumer habits or tastes.
Answer: 29.4 gallons
Explanation:
The Safety Stock that should be held by the company to have a Service Level of 99.0% will be:
= Z × σ × ✓LT
Z = 2.326
σ = Standard deviation = 8
LT = Lead time = 2.50
Safety stock = = Z × σ × ✓LT
= 2.326 × 8 × ✓2.50
= 2.326 × 8 × 1.58
= 29.4 gallons
The safety stock is 29.4 gallons.
According to your text, sales promotions such as free smples and point-of-purchase displays are designed to build. are called "Short-Term sales."
<h3>What is short term sales?</h3>
An property or stock that the seller doesn't own is sold in a short sale. The typical transaction involves an investor selling borrowed securities in expectation of a decrease in price; the seller is then obligated to deliver the same number of shares at a later date. A seller, on the other hand, holds a long position in the stock or asset.
Some characteristics of short term sales are-
- A stock that its an investor believes will lose value in the near future is sold short.
- A trader borrows shares on margin for a set length of time to complete a short sale, selling the stock when the price is attained or the period of time has passed.
- Because short sells restrict gains while amplifying losses, they are regarded as dangerous trading techniques. Additionally, they come with regulatory hazards.
- To be successful, short sales need to be timed almost perfectly.
To know more about short-term investment, here
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