Answer:NO, he his not correct
Explanation:
The fifo and lifo method are only a method of managing stock which means the earliest stock are issued out first in FIFO and last stock are issued out first in LIFO.
Either do not have a predictable advantage over the other in determining net income.
Answer:
Consider the following analysis.
Explanation:
<u>Net Income is adjusted for below
</u>
Depreciation and amortization expense.
Revenues and expenses that did not provide or use cash.
Changes in current liabilities related to operating activities.
Gains and losses from nonoperating items.
<u>Net Income is not adjusted for:
</u>
Changes in noncurrent assets and noncurrent liabilities.
Answer:
C) The firm's exchange rate exposure can be completely hedged with derivatives written on the British pound.
Explanation:
The amount of pound is constant one can completely hedge the interest rate risk.
Answer:
40,000
Explanation:
Under the direct write-off method, bad debts are expensed. The company credits the accounts receivable account on the balance sheet and debits the bad debt expense account on the income statement.
Allowance for doubtful debt (Opening) = 42,000
Add: Bad de expense = 60,000
Total = 102,000
Less: Allowance for doubtful debt (closing) = 62,000
Write offs = 40,000
Answer: Add $45 to the book balance
Explanation:
This is a case of bank reconciliation. Bank reconciliation occurs when the account of the bank and the company or Business are compared in order to check the differences which are then reconciled.
In this case, since the check written and paid by the bank is $649 while in the company's book, it's written as $694, then a book balance of $45 is added which is the difference between $694 and $649