What is the proper accounting for volume discounts onsales of products?

Q: How is the Inventory Turnover calculated?

A: Inventory turnover ratio: Inventory turnover ratio is an efficiency ratio. It is used to find how…

Q: How is Day Sales in Inventory calculated?

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: What factors might call for inventory valuation at salesprices (net realizable value or market…

A: Inventory: Inventory refers to the stock of a business which is traded to earn profits.

Q: What effect does each method used have on the firm’s reportedprofits? On ending inventory levels?

A: Answer: The following is the effect that each method of inventory on firms reported profits:…

Q: How should a non vat seller treat input vat paid on the purchases from vat supplier of inventories…

A: The major purpose of adopting VAT is to reduce the effects of multiple taxes and the cascading…

Q: What is the adjusted balance of Sales and Invenfories?

A: Adjusted Balance of Sales: $49,25,600 Adjusted Balance of Inventories: $3,17,400

Q: What is inventory turnover Ratio? Explain its significance.

A: Explain the meaning of inventory turnover ratio and its significance:Inventory turnover ratio:…

Q: Under what circumstances is relative sales value anappropriate basis for determining the price…

A: Relative sales value is an appropriate basis for pricing inventory when a group of changing units is…

Q: What is inventory turnover ratio?

A: Inventory:   It can be described as a good or material that a company holds for the purpose of…

Q: What is the difference between a sales discount and a purchases discount?

A: The term sales discount is used by the seller, and the term purchase discount is used by the…

Q: Should inventory be measured initially at its market value or at cost?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Explain the argument for and against the use of net price method with respect to purchase discounts?

A: The Net Price Method (NPM) provides information about the purchase discounts lost by the company and…

Q: Which inventory system provides a better matching of revenue and expenses - Weighted Average, Moving…

A: Following is the answer to given problem

Q: How is inventory turnover calculated, and what does it measure?

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: For commercial reasons, a weighted average and inventory system from lifo fifo should be considered.

A: The LIFO (Last in, first-out) The LIFO accounting method is used to value inventory. This method is…

Q: What does the inventory turnover ratio mean?

A: Inventory turnover ratio gives the days required for the company from the date of its purchase to…

Q: ith inflation, what are the implications of using LIFO and FIFO inventory methods? How do they…

A: FIFO: First in, first out (FIFO) is a method of asset management and valuation in which assets…

Q: What does the cost of merchandise inventory includes?

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: What is Inventory turnover rate?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: What does the retail inventory estimates?

A: Retail inventory method:   The retail inventory method is used to calculate the value of ending…

Q: Discuss the concepts of over- and understoring and describe their relationship to the Index of…

A: The Index of Retail Saturation (IRS) is the ratio of available supply to demand for a product…

Q: How do calculate the Cost of Goods Sold without the beginning inventory nor the ending inventory??

A: Cost of goods sold is the total costs incurred on those units of goods or products which are sold by…

Q: Explain how liquidity measures can be influenced by the inventory cost flow assumption used.

A: Inventory Cost Flow Assumptions means the different techniques of measurement of cost of inventory…

Q: What conditions must exist for the retail inventorymethod to provide valid results?

A: Retail inventory method: This method is like a gross profit method. It depends on the relationship…

Q: Which inventory cost appears as a Cost of goods sold in an Income statement under FIFO method?

A: “First-In, First-Out” is a method used for cost flow assumption purposes in the cost of goods sold…

Q: WHAT IS THE TOTAL SELLING AND DISTRIBUTION EXPENSES

A: Selling and distribution expenses includes all the expenses incurred for making a sale and providing…

Q: factors affect inventory turnover ratio

A: The inventory turnover ratio is a financial ratio. It is the rate at which a company is managing its…

Q: What modifications to the conventional retail method are necessary to approximate a LIFO retail…

A: LIFO liquidations: It generally occurs when the organization uses the LIFO inventory valuation…

Q: Which ratio is calculated to ascertain the efficiency of inventory management? *

A: Inventory Turnover Ratio:-This is the efficiency ratio that measures the efficiency of the company…

Q: What is the effect on the cost of goods sold, gross profit, and net income if ending merchandise…

A: Ending inventory is the value of inventory available on hand at the end of the accounting period.

Q: Define Inventory turnover ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Which one the following types of cost is most likely to be included in determining the cost of…

A: Freight in cost is concerned with the inventory value and should be included in determining the cost…

Q: Define and describe the differences between a sales return and a sales allowance

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: What is the purpose of disclosing the difference between the reported LIFO inventory amounts and…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Q: What are the main differences between periodic inventory system and perpetual inventory system?

A: Periodic inventory system and Perpetual inventory systems are two systems used for the inventory…

Q: Which of the following accounts would normally have adebit balance?a. Inventoryb. Sales Returns and…

A: Normal balance refers to the excess of amount on one side, over the amount on the other side in an…

Q: Merchandise inventory turnover measures the relationship between:

A: Inventory Turnover Ratio:   It is an accounting ratio to show the number of times a company has sold…

Q: Distinguish between the gross and net methods of accounting for purchase discounts.

A:

Q: What method(s) might be used in the accounts to recorda loss due to a price decline in the…

A:

Q: What financial statement is merchandise inventory reported on, and in what section?

A: Merchandise Inventory is reported on the Balance sheet of the company under current assets section.…

Q: What is the difference between gross profit method & the retail method?

A: Gross Profit Method:-This method estimates the value of inventory by applying historical gross…

Q: The "Allowance for sales discounts" account may be used under Select the correct response: O Net…

A: Solution: Allowance for sales discount is used when sales discount is accounted for using estimates…

Q: What is the difference between perpetual and periodic inventory system

A: Introduction:- The most important variation between the periodic and perpetual inventory systems is…

Q: Explain the difference between the retail inventory method using LIFO and the dollar-value LIFO…

A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it…

Q: What is the difference between order discounts and volume discounts?

A: there are different types of discount from the cells that customer can earn close discount are…