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love history [14]
3 years ago
15

Of fifo or lifo, which method would produce the more favorable cash flow? fifo, because of it produces lower income tax expense

fifo, because of it produces higher income tax expense lifo, because of it produces lower income tax expense lifo, because of it produces higher income tax expense no difference in cash flow
Business
1 answer:
quester [9]3 years ago
4 0
FIFO stands for First In First Out and LIFO stands for Last In First Out.
Answer: LIFO produces more favorable cash flow because LIFO PRODUCES LOWER INCOME TAX EXPENSE.
During inflation, LIFO approach is adopted for tax benefits. With the rise in prices, LIFO produces higher cost of sold amounts of goods.
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A marketing manager instructs his team to make 80 telephone calls to attempt to sell an insurance policy. The random variable in
Serggg [28]

Answer:

A) discrete random variable.

Explanation:

Discrete random variables can assume only a finite number of values, and their combined total probabilities must equal 1.

On the other hand, continuous random variables can take any value with an interval or collection of intervals, which means that the possible values are infinite.

A complex random variable is a combination of two real random variables that have rel and imaginary parts.

8 0
3 years ago
A two-year bond with par value $1,000 making annual coupon payments of $100 is priced at $1,000. a. What is the yield to maturit
amm1812

Answer: 10%

Explanation:

When the price of a bond is at par, it means that the coupon rate and the Yield to Maturity are the same.

The Coupon rate is the interest rate that the Issuer of the bond pays the bond holders as a percentage of Par.

The Coupon payment here is $100 and the rate is;

= 100/1,000

= 10%

<em>Coupon Rate = 10% = Yield to Maturity </em>

4 0
3 years ago
Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.05 Direct labor
patriot [66]

Answer:

The contribution margin per unit is $5.1

Explanation:

The contribution margin per unit is the amount from selling price per unit after deducting all the related variable costs per unit. This is the amount that each product contributes towards covering the fixed costs.

<u />

<u />

<u>Contribution margin per unit:</u>

Selling price per unit                              18.7

<u>Less : Variable cost per unit</u>

Direct material                                       (7.05)

Direct labor                                             (3.5)

Variable manufacturing Overhead       (1.65)

Sales commission                                  (1.00)

Variable Admin expense                     <u>  (0.40)</u>

Contribution margin per unit                  5.1

3 0
3 years ago
E15-9 (L01,3) (Preferred Stock Entries and Dividends) Otis Thorpe Corporation has 10,000 shares of $100 par value, 8%, preferred
Dimas [21]

Answer:

(a)

Preferred stock Dividend = ( 10,000 x 100 ) x 8% = $80,000

Cumulative Dividend

      Date                   Dividend for the year      Balance

December 31, 2015           $80,0000              $80,000

December 31, 2016           $80,0000              $160,000

December 31, 2017           $80,0000              $240,000

Payable of $240,000 Dividend will be reported on the Balance Sheet.

(b)                                                          Dr.                       Cr.

Preferred Stock (4,000 x $100)   $400,000

Common stock ((4000 x 7) x $10)                            $280,000

Paid-In Capital in excess of Par - Common share  $120,000

(c)

Cash ( 4000 x 107 )                       $428,000

Preferred Stock (4000 x $100)                                 $400,000

Paid-In Capital in excess of Par - Preferred share  $28,000

It will be reported in balance sheet as follow:

Equity                                                                               $

Preferred Stock                                                          400,000

Paid-In Capital in excess of Par - Preferred share     28,000

Explanation:

(a) Last dividend was paid on December 31, 2014, the subsequent 3 years are outstanding until December 31, 2017, so the total payable dividend is $240,000 which will be reported on Balance sheet.

(b) 4000 preferred shares on par value are converted to 7 common shares each at $10 par value.

(c) Preferred stock issued @ $107 will be reported as Preferred stock of $400,000 and Paid-In Capital in excess of Par - Preferred share of $28,000.

3 0
3 years ago
Under the Uniform Securities Act, which of the following negates a client's right to a civil suit for damages?
mart [117]

Answer:

C) I only.

Explanation:

According to the Uniform Securities Act, A civil case underneath the provisions of the United States must be filed in 3 years of the alleged infringement, or 2 years from the detection of the breach, whatever comes first.

Also, The passing of the consultant or the client doesn't really eliminate a civil liability prima facie case. Waivers to statements agreed to sign by the customer waiving adherence by the consultant with the provisions of this act on which the suit is focused aren't ever legitimate on the examination.

Therefore the option i is correct

8 0
3 years ago
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