Related questions
A store engaged in reselling jewelries would least likely employ which inventory system?
a. EOQ
b. Two-bin method
c. Just in time
d. ABC system
7. A grocery store owner selling low value items would be the most interested in this inventory management system:
a. EOQ
b. Two-bin method
c. Just in time
d. ABC system
8. Components of a firm’s cash conversion cycle include:
a. Average collection period, average age of inventory
b. Average payment period, average collection period
c. Average age of inventory and average payment period
d. Average of age inventory, average collection period and average payment period
9. Which of the following statements is correct with regard to the use of a lockbox system?
a. It reduces mail float and clearing float but not payment float.
b. It reduces all components of a float.
c. It reduces payment and mail float but not clearing float.
d. It increases all components of a float.
10. Which of the following is not a common collection technique for
a. Sending letters of demands
b. Making phone calls
c. Sending legal notices
d. Writing off customer accounts
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- 1. Which statement applies to the specific identification inventory method? This method is also known as the average cash flow method. The ending inventory is made up of the most recent purchases. Each unit sold is identified with a specific purchase. This is closely related to a perpetual inventory system. 2. Why does the specific identification inventory method work well for business such as automobile dealerships? The inventory keeps track of the automobiles that are first-in first-out. This method works because each automobile has a unique serial number. It best shows the current cash flow at all times. It’s the easiest method to factor the perpetual inventory costs.arrow_forwardAmong the simple average pricing and weighted average pricing method. Which of the store ledger preparing method is more preferrable in this contemporary business world and why?arrow_forwardWhich of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory levelarrow_forward
- Iarrow_forwardPlease help me to solve this problemarrow_forwardHow do retail companies correctly match expenses with revenue for the period to get an accurate net income? a. With a modern POS system. b. With the consistency principle. c. With a goods-on-hand estimate from the Controller. d. With a physical inventory. According to the Home Depot’s financial statement example provided by the author, which is the predominant method of inventory valuation used by the company? a. FIFO b. LIFO c. NRV d. LCM please provide me a coerrect answer explains tep by steparrow_forward
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