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rodikova [14]
3 years ago
5

ABC Corp. was formed on 1/1/05 and is in the business of buying and selling erasers. The cost of purchasing erasers and the numb

er of erasers held in inventory has steadily increased since the company was formed. Which of the following inventory methods will result in the lowest reported gross profit in the year ended 12/31/13 income statement?
a) Average cost
b) FIFO
c) LIFO
d) Can't be determined with the information provided
Business
1 answer:
mario62 [17]3 years ago
7 0

Answer:

<u>c) LIFO</u>

Explanation:

Indeed, the LIFO (Last in First Out) inventory method is known to give the lowest gross profit when calculating income statement.

Since this method takes account of the most recently purchased items as sold first, and the cost of purchasing erasers and the number of erasers held in inventory has steadily increased, it thus means that items bought costly would be accounted for first leading to low reported gross profit.

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Housing subsidies for low-income households:__________.
Trava [24]

Answer:

D. represent a non-cash transfer.

Explanation:

Subsidized Housing is simply a form of housing where financial incentive is somehow given or provided in the form of a direct payment or tax relief to the housing developer, individual renter e.t.c.

Subsidy is said to be an incentive financial) give in the form of a direct payment or tax relief to the housing developer, property owner, or individual renter.

Low-Income Households are usually a households whose incomes do not surpass 80% of the median income for the area as stated by the department of housing and urban development.

8 0
3 years ago
At Creighton Company, the following errors were discovered after the transactions had been journalized and posted.1. A collectio
dangina [55]

Answer:

The correction entries shall be as follows,

1. Service Revenue    Dr. $ 920

  Customer Account   Cr. $ 920

2.  Store Purchases Dr. $1,180

    Accounts Payable Dr.$340  

   Supplies Account              Cr. $ 1,520

     

 Explanation:

1. The service revenue account was overstated and customer account understated. therefore by debiting service revenue and by crediting customer account, both have been restated at their actual position.

2. The accounts payable was overstated by $ 340 (1,180-1520).it is rectified by debiting with $ 340. Whereas the supplies account was wrongly debited therefore that impact of $1,520 reversed and actual store purchases debited with actual amount of $1,180

6 0
3 years ago
a debt of $1,000 is incurred at t 5 0. What is the amount of four equal payments at t 5 1, 2, 3, and 4 that will repay the debt
harina [27]

Answer: $315.47

Explanation:

As this requires equal annual payments, it makes it an annuity. The $1,000 debt will be the present value of the annuity so a present value of annuity formula can be used:

1,000 = Annuity * ( 1 - ( 1 + rate) ^ -n) / rate

1,000 = Annuity * ( 1 - ( 1 + 10%)⁻⁴ ) / 10%

1,000 = Annuity * 3.169865

Annuity = 1,000/3.169865

Annuity = $315.47

7 0
3 years ago
As the U.S. dollar appreciates, the U.S. ____________ curve shifts _____________ resulting in a(n) _________________ in the U.S.
Maslowich

Answer: a. AD; leftward; decrease; decrease.

Explanation:

If the dollar appreciates (the exchange rate increases), the relative price of domestic goods and services increases while the relative price of foreign goods and services falls. Also, the change in relative prices will decrease U.S. exports and increase its imports.

Aggregate demand shift leftward.

8 0
3 years ago
Give the human resource and it law​
Maslowich

Human resources (HR) professionals are responsible for strategically managing employees within an organization while remaining compliant with laws that govern employee rights and employer obligations. If an organization violates these complex and ever-changing regulations, it exposes itself to risk, including lawsuits, financial losses, and reputation damage.

Since non-compliance can result in such serious consequences, there is a strong demand for industry workers who possess knowledge of HR laws and common legal issues in the workplace.

6 0
3 years ago
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