The cost of an item if the full amount had been paid at the time of sale is called the O A. down payment price O B. installment price OC. total price O D. cash price

Q: what is the effect of purchase supples on accout on current ratio?

A: Current ratio is the one that shows the current assets as numerator and current liabilities…

Q: If the sale price executes at the price you specified, what would be the total loss, excluding…

A: Sales price when executed at the price specified will be equal to the breakeven price.  Break even…

Q: The purchasing document should also specify when payment is due. This is usually expressed as a net…

A: One of the important part of signing the contract or preparing invoice is to mention payment terms.…

Q: The cost of goods on hand and available for sale at any given time and treated as a current asset…

A: The cost of goods available on hand is an asset.

Q: In accountinf for sales discounts, most companies use the a. Allowance method b. Gross price…

A: The most commonly used method is the gross price method.in these sales, the discount is deducted…

Q: Explain an example of dollar value LIFO retail method.

A: Under this method, goods are combined into pools and all increases and decreases in a pool are…

Q: When a product is sold on credit, which account should be debited for the seller? A.cash…

A: Sale of a product means to sell the goods in stock to the customer. It can be sold either on cash or…

Q: The length of time from the payment for purchases of raw materials until the collection of account…

A: The length of time is calculated in days

Q: Wages payable is classified as : a. Current asset b. Long term liability c. Fixed asset d. Current…

A: Current Assets: Current assets can be sold in the near future and cash can be generated from the…

Q: Net sales minus cost of good sold is equal to cost of ending inventory.   T/F

A: The ending inventory is the amount of inventory left with business at year end.

Q: O Cash price less down payment equals

A: Cash Price minus Down payment = Amount Financed

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: A sales discount is added in calculating net sales

A: The net sales are reported in the income statement of the company. The expenses would be deducted…

Q: How to calculate the list price? O a. List price = Amount of Discount/Rate of Discount O b. List…

A: Discount means the amount which is not required to be paid or received. Discount is deducted to find…

Q: Received a refund from Schell Co. for return in (c) less the purchase in (d).

A: Solution: Amount of refund received = Amount of return - purchase = ($9,000*99%) - $5,000 = $3,910

Q: Under the lower of cost or market inventory valuation rule, market value of inventory is defined as:…

A: Market value is the price of an item/product prevailing in the market on the given date.

Q: Th e carrying value of inventories refl ects: C . the lower of historical cost or net realizable…

A: In accordance to International Accounting Standard (IAS) 2 issued by the antecedent International…

Q: FAST PLZ - Which of the following element of cost is important in calculating the cost of closing…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: Cost of goods sold = Opening inventory + Purchases – Purchase returns (if any) – _________. Select…

A: Gross profit means the difference between the sale revenue and cost of goods sold. Cost of goods…

Q: Determining the transfer price as the price at which the product or service transferred could be…

A: Transfer pricing relates to the procedure used to establish the price of products or services traded…

Q: Average collection period. Inventory turnover Fixed asset turnover.

A: Average collection period - This metric is used to represent the average number of days between the…

Q: The cost of PPE includes which of the following : Its invoice price, less any cash discount for…

A: The cost of PPE includes all those expenses which are incurred directly on the PPE for making that…

Q: Journalize the following transactions for the seller, Williams Company, using the gross method to…

A: Journal entries are a part of the accounting system which identifies, evaluates, and records the…

Q: The dollar amount paid by a retailer to acquire a product from a wholesaler is known as the…

A: Goods Purchase Cost: The cost of the products that were bought is the same as the merchandise's net…

Q: What are the main differences between a perpetual system  and a periodic system? In your…

A: In accounting, there may be different methods to record a financial transaction. The selling and…

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

A: Volume discounts: It is an incentive to encourage for an increase in business. The seller issue…

Q: assumes that money holds a constant purchasing power Present value accounting .a O Fair market value…

A: Purchasing power of a currency can be defined as the amount of goods and services that can be…

Q: Th e carrying value of inventories refl ects: B . their current value.

A: Carrying value: The face amount of bond, less unamortized discount, or plus unamortized premium, is…

Q: Which of the following is correct for net purchases ? Select one: O a. Opening inventory + purchases…

A: Purchases refer to the business activity of procurement goods (either finished or raw materials) or…

Q: The transaction price: A) Is always the price that competitors see. B) May include a trade…

A: Price: It implies to an estimated amount of money that acts as consideration in sale or purchase of…

Q: The balance of the Cost of Goods Sold account: O a. increases when there is a sale. O b. increases…

A: When there is a sale then unit of goods would be sold more and which will increase the cost of…

Q: What is the formula for calculating sales tax? A. Amount of Purchase x Sales Tax Rate = Sales Tax B.…

A: Sales tax : Sales tax is the amount that the merchant must charge to customers who purchase the…

Q: Statement II. The transaction price for the sale of the product with premium is recorded as a…

A: The answer has been mentioned below.

Q: em. b. the amount of money paid for an item,

A: Opportunity costs are the potential gains that an individual, investor, or corporation foregoes by…

Q: cost of goods sold

A: Option a - Direct wages are part of cost of goods sold Option b - Purchases are included while…

Q: Which of the following is indicative of discounts received from a supplier on account of volume of…

A: The company give many types of discount to increase the sales that depend on many factors. These are…

Q: The objective of is to encourage the buyer to purchase in large quantities and to increase the level…

A: The sellers of the goods adopt various techniques to encourage the buyers to acquire goods in large…

Q: Decreases in the seller's receivable from a customer's return of merchandise or from granting the…

A: Seller is the person who sells goods and services to customers. Customers are the persons who buys…

Q: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income?…

A: When a corporation values its inventory using FIFO, it reports reduced COGS, which boosts its gross…

Q: purchase on account on effect on current ratio

A: Current ratio is the ratio of current assets to current liabilities.  Current Ratio = Current Assets…

Q: e list price of a product agreed betw anufacturer to a wholesaler? a. Mark up b. Trade discount c.…

A: Option B is the Correct Answer.

Q: When equipment is sold for morethan book value, how is the transaction recorded? Howis it recorded…

A: Equipment is an Asset. Generally these provides support to the plant so commonly known as Plant…

Q: Cost of Goods sold excludes __________? a.

A: Cost of goods sold is the ascertainment of the cost of the goods sold during the accounting period.…

Q: How can you describe the term Historical Cost? a. It is the amount paid to purchase an item plus any…

A: Historical value is the value of asset at it original cost when acquired by the company. Most of the…