Homework Answers
Correct answer---(c) Reduce the cost of merchandise acquired from supplier.
Explanation
Showing a high value of ending inventory can increase income and low ending inventory can save tax money as it decreases profit.
Cost of goods sold determines Inventory turnover, inventory valuation affects COGS hence it changes inventory turnover.
The only thing that cannot be achived using inventory valuation is cost of merchandise purchase. Cost of merchandise will remain same whichever method is used.
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Question 9 The choice of inventory valuation method can help achieve each of the following independent...
1) What is the purpose of inventory valuation methods? 2) What are the four inventory valuation...
1) What is the purpose of inventory valuation methods? 2) What are the four inventory valuation methods a company can use? 3) What inventory method is best used with many items with similar costs? 4) What inventory method will provide the highest net income when prices are rising? 4) What inventory method could help a company reduce its corporate income taxes? 5) What is inventory turnover and how is it measured?
Question 7 Not yet answered Which of the following is not an accounting method that could...
Question 7 Not yet answered Which of the following is not an accounting method that could be chosen by a company to increase reported profits? Marked out of 1.00 Flag question Select one: O a. Understating allowance for doubtful debts O b. Changing the method of inventory valuation in a period of rising prices O c. None of the options O d. Classifying long-term receivables as current assets Oe. Changing estimates of the useful life of plant and equipment
Need help on accounting questions. , I just need the multiple choice answers... Question 9: In...
Need help on accounting questions. , I just need the multiple choice answers... Question 9: In the straight line depreciation formula you learned in this course: A: the amount of charge (depreciation expense) will decrease each period as the depreciable base shrinks B: two of the choices above represent correct statements C: the numerator of the fraction represents the gross cost of the asset D: salvage value (residual value) must be taken into account and this will necessarily increase the...
iuple Choice Question 125 Using the indirect method, which of the following adjustments to convert net...
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Smart Company prepared its annual financial statements d inventory costing method and failed to e...
Smart Company prepared its annual financial statements d inventory costing method and failed to evaluate its net realizable value at December 31. The preliminary income statement follows ated December 31. The company reported its inventory using the FIFO $282,000 Sales Revenue Cost of Goods Sold 31,000 184,000 215,000 55,900 Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Incone from Operations Income Tax Expense (30u) Net Income 122,900 62,000 60,900 18,270 s...
An annual report for International Paper Company included the following note: The last-in, first-out inventory method...
An annual report for International Paper Company included the following note: The last-in, first-out inventory method is used to value most of International Paper’s U.S. inventories . . . If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $293 million and $290 million at December 31, 2017, and 2016, respectively. For the year 2017, International Paper Company reported net income (after taxes) of $2,144 million. At December 31, 2017, the balance of...
rall 2019 O Seved Help Each of the following independent situations represents amounts shown on the four basic fina...
rall 2019 O Seved Help Each of the following independent situations represents amounts shown on the four basic financial statements. Fill in the missing blanks using your knowledge of amounts that appear on the financial statements. (Negative amounts should be indicated by a minus sign.) 1. Revenues $27.000; Expenses = $18,000; Net income Increase in stockholders' equity = $20,000; Issuance of common stock $12,000: Dividends = $5,000; Net income = Assets $25,000; Liabilities = $13,000: Stockholders' equity = Total change...
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P7-8 (Algo) Evaluating the Choice between LIFO and FIFO Based on an Inventory Note LO7-6 [The following information applies to the questions displayed below.] An annual report for National Paper Company included the following note: The last-in, first-out inventory method is used to value most of National Paper’s U.S. inventories . . . If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $273.0 million and $230.0 million at December 31, 2017, and...
Question 7 Not yet answered Which of the following is not an accounting method that could be chosen by a company to increase reported profits? Marked out of 1.00 Flag question Select one: O a. Understating allowance for doubtful debts O b. Changing the method of inventory valuation in a period of rising prices O c. None of the options O d. Classifying long-term receivables as current assets Oe. Changing estimates of the useful life of plant and equipment
iuple Choice Question 125 Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is incorrect? Add to Net Income Deduct from Net Income CALCULATO O Accounts Payable O Inventory increase decrease O decrease Accounts Receivable O decrease Prepaid Expenses increase increase Click if you would like to show Work for this question: Open Show Question Attempts of I used SAVE FORU to search
Question 5 The only inventory method that calculates the actual cost of each ending inventory item is specific identification. weighted average. FIFO (first-in; first-out). LIFO (first-in:first-out). Next 2.5 PL Adam James and Jane Smith are partners. The entry to distribute a net loss to both partners is debit, Adam James, Drawing; debit, Jane Smith, Drawing credit, Income Summary debit, Income Summary; credit, Adam James, Capital; credit, Jane Smith, Capital. debit, Adam James, Capital; debit, Jane Smith, Capital; credit Income Summary....
Smart Company prepared its annual financial statements d inventory costing method and failed to evaluate its net realizable value at December 31. The preliminary income statement follows ated December 31. The company reported its inventory using the FIFO $282,000 Sales Revenue Cost of Goods Sold 31,000 184,000 215,000 55,900 Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Incone from Operations Income Tax Expense (30u) Net Income 122,900 62,000 60,900 18,270 s...
rall 2019 O Seved Help Each of the following independent situations represents amounts shown on the four basic financial statements. Fill in the missing blanks using your knowledge of amounts that appear on the financial statements. (Negative amounts should be indicated by a minus sign.) 1. Revenues $27.000; Expenses = $18,000; Net income Increase in stockholders' equity = $20,000; Issuance of common stock $12,000: Dividends = $5,000; Net income = Assets $25,000; Liabilities = $13,000: Stockholders' equity = Total change...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS records, does not 1 . F. As Inventory is sold in many retail businesses, the largest expense is created A business using the perpetual Inventory system with detailed subsidiary records, does need to a physical Inventory count. 5. T.F. A detective internal control is designed to find error or misstatement after loss has occurred. 4. T. F. Purchased goods shipped FOB shipping point should be excluded from inventory of the purchaser. 5. T....
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