Recent Question

Job creation in October was much more robust than most forecasters had predicted 1. "Even if employment continues to climb, the jobless rate will likely stay around its current level for the balance of this year, Cramer said. That's because ........." Complete this clipping. a) the labor force will shrink b) the extra jobs will be part-time c) of increases in the participation rate d) of an increase in discouraged workers 2. "Job creat ...

Other / Other 07 May 2016

1996 income expressed in 1995 dollars is 1. The CPI (base year 1987) for 1990 is 120, for 1991 is 125 and for 1992 is 130. If the base year is changed from 1987 to 1992, what does the CPI for 1990 become? a) 90 b) 92.3 c) 108.3 d) 110 2. If GDP increases in nominal terms from $600 billion in 1994 to $780 billion in 1996 and the price index (1992=100) rises from 120 to 130, how much real growth (in 1992 dollars) in GDP occurred betwee ...

Other / Other 07 May 2016

An increase in the number of encouraged workers 1. Other things equal, an increase in the number of "encouraged workers" will a) create jobs b) lower the participation rate c) decrease the size of the labour force d) increase the measured unemployment rate 2. An increase in the number of encouraged workers a) raises the unemployment rate and the participation rate b) lowers the unemployment rate and the participation rate c) l ...

Other / Other 07 May 2016

What is Drake’s ending inventory at retail 1. Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year: Cost Retail Beginning inventory $ 30,000 $ 50,000 Purchases 145,000 200,000 Freight-in 2,500 — Net markups — 8,500 Net markdowns — 10,000 Employee discounts — 1,000 Sales — 205,000 ...

Other / Other 06 May 2016

The gross profit method of inventory valuation is invalid 1. At the end of the fiscal year, Apha Airlines has an outstanding non-cancellable purchase commitment for the purchase of 1 million gallons of jet fuel at a price of $4.10 per gallon for delivery during the coming summer. The company prices its inventory at the LCNRV. If the market price for jet fuel at the end of the year is $4.50, how would this situation be reflected in the ...

Other / Other 06 May 2016

Prepare the journal entry to record the sale of the grapes harvested Ex. 1—Retail Inventory Method. Presented below is information related to Kuchinsky Company. Cost Retail Beginning inventory € 280,000 € 390,000 Purchases 1,820,000 3,000,000 Markups 130,000 Markup cancellations 20,000 Markdowns 47,000 Markdown c ...

Other / Other 06 May 2016

When the conventional retail method includes both net markups and net markdowns True or false: 1. In most situations, the gross profit percentage is stated as a percentage of cost. 2. A disadvantage of the gross profit method is that it uses past percentages in determining the markup. 3. When the conventional retail method includes both net markups and net markdowns in the cost-to-retail ratio, it approximates a lower-of-cost-or-net ...

Other / Other 06 May 2016

Why are inventories stated at lower-of-cost-or-net realizable value 1. LCNRV of inventory a. is always either the net realizable value or its cost. b. should always be equal to net realizable value. c. may sometimes be less than net realizable value. d. should always be equal to net realizable value less costs to complete. 2. Lower-of-cost-or-net realizable value a. gives the lowest valuation if applied to the total inventory. ...

Other / Other 06 May 2016

Henke Co. uses the retail inventory method to estimate 1. Ryan Distribution Co. has determined its December 31, 2010 inventory on a FIFO basis at $250,000. Information pertaining to that inventory follows: Selling price $255,000 Cost to sell 10,000 Cost to complete 30,000 Ryan records losses that result from applying the lower-of-cost-or-net realizable value rule. At December 31, 2010, the loss that Ryan should recognize is a. $0. b ...

Other / Other 06 May 2016

The lower-of-cost-or-net realizable method is used for inventory True or false: 1. A company should abandon the historical cost principle when the future utility of the inventory item falls below its original cost. 2. The lower-of-cost-or-net realizable method is used for inventory despite being less conservative than valuing inventory at net realizable value. 3. Application of the lower-of-cost-or-net realizable value rule resul ...

Other / Other 06 May 2016