When a firm faces an inflationary condition and the LIFO inventory method is based on a periodic

Question:

When a firm faces an inflationary condition and the LIFO inventory method is based on a periodic basis, purchases late in the year can have a substantial influence on profits. Comment.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Reporting and Analysis Using Financial Accounting Information

ISBN: 978-1439080603

12th Edition

Authors: Charles H Gibson

See More Books

Question Posted: Feb 01, 2013 07:20 AM

See More Questions

When a firm faces a negative pressas Coca-Cola did with the new Coke, and almost 15 years later in Europewhat recourse does a firm have? Support your conclusions.
A company uses the LIFO inventory method to determine cost. One of the managers complains that this is improper. He states: "We always sell our oldest products first. So we should be using first in,...
The LIFO inventory method is presently an accepted inventory method for tax purposes. This method, during inflation, results in a lower ending inventory value than the other inventory methods....
In Exercises 1126, determine whether each equation defines y as a function of x. x + y = 16
Two genes in tomatoes are 61 mu apart; normal fruit (F) is dominant to fasciated (flattened) fruit (f), and normal numbers of leaves (Lf) is dominant to leafy (lf). A true-breeding plant with normal...
Determine the force F at the end of the beam C so that the displacement at C is zero. EI is constant. Use the conjugate-beam method. B
What is the purpose of financial statements? Would you want to produce them even if they were not required, say, for entity tax reporting?
The business problem facing the director of broadcasting operations for a television station was the issue of standby hours (i. e., hours in which unionized graphic artists at the station are paid...
A uniform beam of length 10 m and mass 100 kg is supported by pylons on either end. A 200 kg box is centered at 5 m from the left end of the beam. What is the downward force on the left most pylon?
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Define working capital.
Which inventory costing method results in the highest balance sheet amount for inventory? (Assume inflationary conditions.)
What do you think is the path to becoming a great data scientist?
Sami, 34, and Ronald, 31, want to buy their first home. Their current combined net income is $65,000 and they have two auto loans totaling $32,000. They have saved approximately $12,000 for the...
The financial year of S. Smith ended on 31 December 2013. Show the ledger accounts for the following items including the balance transferred to the necessary part of the financial statements, also...
According to a January 5, 2017, article in The Guardian, consumer spending in Britain on subscription streaming services for movies and TV shows grew by $23 \%$ between 2015 and 2016 to $ 1.3$...
A $1-\mathrm{kg}$ block is used to compress a spring with spring constant $k=10.0 \mathrm{~N} / \mathrm{m}$ by $5 \mathrm{~cm}$, and then released. Draw energy diagrams for the spring-mass...
An article in the Wall Street Journal reported that Tesla Inc. delivered about 35 percent more electric vehicles (EVs) in the first quarter of 2023 than in the same quarter of 2022. Elon Musk, Teslas...
Find an equation of the form = (, ) in spherical coordinates for the following surfaces. z = 2
Which of the following statements is false? a. Capital leases are not commonly reported in a Capital Projects Fund. b. A governmental entity may report a Capital Project Fund in one year but not the...
This exercise is based on data describing recreation visits to 17 beaches in the American state of North Carolina by a sample of residents from the eastern part of the state. The dataset...
The Java House is developing its annual financial statements for 2014. The following amounts were correct at December 31, 2014: cash, $ 58,800; investment in shares of PAX Corporation (long term), $...
RONA Inc. (www. rona. ca), founded in 1939, is Canadas leading distributor and retailer of hardware, home improvement, and gardening products. It has a network that exceeds 600 stores across Canada....
Leons Furniture Limited is a leading Canadian full- line furniture retailer. The company sells home furnishings, major appliances, and home electronics through more than 75 company- owned and...
What choice is a multiple of 5? a) 93 b) 63 c) 65 d) 84
Determine how many tablets will be needed to give the dosage. Prepare a dosage of 6.4 mg using tablets with a strength of 1.6 mg.
(a). Company Inc., private consumer regulator firm, claims that the standard deviation of the rating of Formula One races in the town main car racing circuit was at least 15.34. (b). An outside...

When a firm faces an inflationary condition and the LIFO inventory method is based on a periodic

Question:

Step by Step Answer:

Periodic means inventory account is not update duri...View the full answer

Financial Reporting and Analysis Using Financial Accounting Information

Students also viewed these Accounting questions