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.
Answer:
total revenue test: elastic. If demand is elastic, a decrease in price will increase total revenue, and an increase in price will reduce total revenue. total revenue: inelastic.
Explanation:
Answer and Explanation:
The journal entry is shown below;
Fees receivable $7,200 ($10,800 × 4 months ÷ 6 months)
To Service fees earned $7,200
(being service fees earned is recorded)
Here the fees receivable is debited as it increased the assets and credited the service fees earned as it also increased the revenue
So, this journal entry should be recorded
To establish and maintain the store’s brand image in the customer’s mind. It provides support for the rest of the retailer’s selling efforts through display.
What page the ad will be located on in the publication are all decisions involving the PR and the Editorial boards.
Explanation:
The positioning of advertisements on a publication is something that is usually pre decided by the firm for the spots according to the preferences they give to certain clients during an ad cycle and in special cases, they make amends to these policies.
These policies are drawn up by the PR team in accordance with the Editorial team to make sure to have proper and required space to run ads to the maximum profit of all the beneficiaries and to give attractive spots to lure more cosponsors.
