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Artemon [7]
3 years ago
11

If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping

point in purchases, but not ending inventory
Business
1 answer:
stealth61 [152]3 years ago
4 0

Answer:

Net Income will be undervalued.

Explanation:

In a Free on Board shipping (FOB) the Buyer assumes all risks and rewards of ownership of the goods purchased when the goods have been loaded or passed the shipping rail.

The costs incurred at Free on Board shipping (FOB) must be included in both the Purchases and Ending Inventory. If the cost is not included in ending inventory, this means Cost of Sales will be overvalued and consequently Gross Profit and Net Income will be undervalued.

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Child, family, and school social workers influence conditions _____.
Anastaziya [24]

Answer:

in all communities

Hope that helps!

5 0
2 years ago
Read 2 more answers
Given the following list of accounts with normal balances, what are the trial balance totals of the debits and credits?
Alexeev081 [22]

Please see attached image to see the given data.

 

The trial balance totals of the debits and credits are $2,250 debit, $2,250 credit.

 

<span>$1000 (cash) + $500 (Equipment) + $750 (Salaries Expense) = $2,250 Debit

$350 (Accounts Payable) + $900 (Capital) + $1000 (Service Fees) = $2,250 Credit</span>

7 0
3 years ago
The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactu
Sholpan [36]

Answer: A.exceed units sold

Explanation:

In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.

Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.

This difference in consideration of costs under each method leads to difference in income determination under each method.

Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.

This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.

8 0
2 years ago
A conventional peg refers to. Multiple Choice where the exchange rate remains within a narrow margin of 2 percent relative to a
Trava [24]

A conventional peg refers to when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows.

for better understanding lets explain what conventional peg means

  • conventional peg as related to when country formally (de jure) pinpoint their own currency at a fixed rate to the currency of another said country example is, from the currencies of major trading or financial partners and weights showing on the distribution of trade in different geographical zones
  • The known backbone or anchor currency or basket weights are public or notified to the IMF and a country authorities are able to maintain the fixed parity through direct intervention

From the above, we can therefore say that the answer A conventional peg refers to when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows is correct.

learn more about exchange rates from:

brainly.com/question/21384395

3 0
2 years ago
Erick is planning to invest $500 at the end of year one, 800 at the end of year two, and 900 at the end of uear three at 4.5 per
UkoKoshka [18]

Answer:

Final value= $2,282.013

Explanation:

Giving the following information:

Erick is planning to invest $500 at the end of year one, 800 at the end of year two, and 900 at the end of year three at 4.5 percent interest.

To calculate the total final value of the investment, we need to use the following formula for each deposit:

FV= PV*(1+i)^n

Deposit 1= 500*1.045^2= 546.013

Deposit 2= 800*1.045= 836

Deposit 3= 900

Final value= $2,282.013

4 0
3 years ago
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