Answer:
The correct answer is older; lower; higher.
Explanation:
The FIFO method assumes that the next item to be sold is the one that has more time to be stored. In an economy with rising prices (during inflation), it is common for companies to use during their beginnings to increase the value of their assets. As the oldest and cheapest goods are sold, the newest and most expensive goods are kept as company assets. The cost of sale will be the oldest of the existing acquisition prices, and the final stocks will coincide with the last entries in the company's warehouse. Having the most expensive inventory and the lowest cost of products sold allows the company to show better economic performance. However, as they grow, some companies prefer to change their inventory accounting system to LIFO to reduce the payment of taxes. FIFO is an acronym that means "first to enter, first to leave." With this inventory valuation method, the company counts the inventory value received first when sales are made. One of the most common reasons that a company decides to use FIFO is because it is a more natural way in a straight line, since you count your first inventory as in the first items sold. This makes it especially useful when tracking inventory items is simple.
Companies using the accrual concept of accounting to complete the measurement process at the year end through the recording of adjusting entries.
<h3>What is an accrual concept?</h3>
An accrual concept is one of the method which records the incomes at the time when it is earned or charges when it is incurred.
Adjusting entries are the entries recorded in the accounting books to close all the accounts at the year end. It helps in determining the correct amount of charges and revenues at the time of finalizing the accounting statements.
Therefore, the adjusting entries are used by the company to complete the measurement process while applying the accrual concept.
Learn more about the accrual concept in the related link:
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Answer:
Return on equity in 2017 is 12% while that of 2016 is 12.5%
Explanation:
The formula for return on equity is given as net income/equity.
The net income is $120000 for 2017 and $100000 for 2016.
Shareholders' average equity is 1000000 shares in 2017 and 800000 shares in 2016.
2017 2016
Return on equity 120000/1000000 100000/800000
Return on equity 0.12 0.125
The return on equity is 12.0% in 2017 and 12.5% in 2016.
From all indications, the issue of additional shares to the tune of $120000 lead to a reduction in return on equity in 2017 by 0.5%
Answer:
Give the speech psychological unity.
Explanation:
In delivering a speech a good beginning is considered important but the one who knows how to end a speech well is the one who has mastered in delivering a speech. Not only does a good beginning but a good ending matters in delivering a speech. The conclusion is considered the climax of a speech.
<u>Referring to the introduction in the conclusion is considered the best way of concluding your speech by creating a psychological unity. Creating a psychological unity in a speech is done when the orator brings the introduction to the conclusion and creating the unity between the introduction and conclusion of the speech</u>.
In the given scenario, Dale has used the criteria of giving the speech psychological unity. Thus the correct answer is 'Give the speech psychological unity.'
Answer:
Debit Credit
Treasury Stock 69,000
Cash 69,000
Explanation:
In this transaction the corporation is paying cash to buy common stock so the amount paid for the stock will be credited as cash. So we will credit cash by 69,000 as that is the amount paid by the corporation to buy the stock. Secondly whenever a company buy's it's own stock the amount is debited as treasury stock so we will debit treasury stock by 69,000.