How 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 step

How 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 step

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following statements is correct with respect to inventories? The FIFO cost flow…

A: Inventory can be defined as the stock of goods or products that is manufactured and stored by the…

Q: Determine which of the following statements are correct regarding the difference between physical…

A: The physical flow, the physical movement of goods and services. Physical flow means flows of…

Q: What is the effect on net income if a company failed ro record a purchase in transit (FOB shipping…

A: Purchase in transit (FOB shipping point) means that where buyer become the owner of the goods at the…

Q: Under what circumstances would a company need to estimate its inventory? What are the differences…

A: The worth of the items in your inventory at the time of your most recent physical count is the…

Q: The inventory valuation method that has the advantages of assigning an amount to inventory on the…

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

Q: Select all that apply Identify the statements below which are correct regarding a merchandiser's…

A: A multi-step income statement is a financial statement that provides a detailed breakdown of a…

Q: The tests of controls for inventory records would include the following procedures. A. Existence. B.…

A: 1. C Trace a sample of sales invoices to perpetual inventory record entry of issue. Completeness 2.…

Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…

A: An inventory system is a method used by businesses to keep track of their inventory, which includes…

Q: Explanation consideration for business while d a inventory system from lifo fifo and weighted…

A: LIFO (Last in first out) LIFO is used to place an accounting value of inventories. It is based on…

Q: Match the accounting term with its correct definition. Question 1 options: 1. contains deductions…

A: Introduction:Periodic Inventory:The periodic inventory system is based on periodic reviews and…

Q: Which inventory costing method produces a more accurate income statement – FIFO or LIFO? ___________…

A: Lets understand the basics. There are various inventory methods are followed for calculating ending…

Q: Although merchandising transactions affect the balance sheet in reporting inventory, they primarily…

A: Solution: Merchandising transactions involves purchase and sales of goods. these transactions…

Q: Walmart uses a perpetual inventory system. Which of the following is a reason why Walmart needs to…

A: Periodic inventory system is that inventory system under which all transactions related to inventory…

Q: Which of the following statements is true about the periodic inventory system? Question 2Select one:…

A: Inventory valuation is referred to as that method which helps in assigning a monetary value to the…

Q: Why would a company choose to use an inventory costing method that estimates the cost of the goods…

A: In this question, we explain that why would a company choose to use an inventory costing method…

Q: 2. Which financial statement would users find these inventory accounts?

A: As per the guidelines, only one question is allowed to be answered. Please upload different…

Q: The following accounts are included in the ledger of David Company: Advertising expense Freight-in…

A: Cost of goods sold = Beginning inventory + Net purchases + Direct expenses - Ending inventory

Q: Required: 1. Complete the…

A: "Since you have posted multiple questions with multiple sub parts,we will provide the solution only…

Q: compute the ending inventory using the retail method. Explain the steps that you would use in…

A: Inventory is the good which are the products which company have for the purpose of sale by the…

Q: • Explain why there isn't there a "Cost of merchandise sold" expense for a service business.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Using the following letters to represent items: P = purchases (net) C = cost of good sold B =…

A: We know, Ending inventory = Begining inventory + Purchases - Cost of good sold E = B + P - C

Q: Which inventory system would allow a business to determine inventory shrinkage (breakage, theft,…

A: Inventory Systems: Inventory systems are classified as periodic or perpetual based on how invetory…

Q: comparing the accounts of a merchandising company with those of a service company, what additional…

A: Merchandise company sales goods to customers while service company provide services to customer and…

Q: Explain how the inventory valuation method (LIFO or FIFO) chosen by a company affects the cost of…

A: Inventory management refers to the valuation of inventory in three ways FIFO, LIFO and weighted…

Question

How 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 step

Definition Definition Accounting practice that allows a business to determine the monetary value of any unsold inventory.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Which inventory system would allow a business to determine inventory shrinkage (breakage, theft, etc.)? OLIFO O Perpetual O FIFO O Periodic
1.Complete the applicable inventory record card, and calculate cost of goods sold and the cost of ending inventory under each of the following inventory cost flow assumptions: a. FIFO b. LIFO c. Specific identification d. Weighted average. 2. Prepare the journal entries required to record purchases and sales using the FIFO inventory cost flow assumption. Descriptions are not necessary. 3. Refer to the "Compare" page. Calculate the sum of cost of goods sold and ending inventory balances under each of the four inventory cost flow assumptions. Explain the results.…
Which of the following types of companies may be the least likely to carry inventory on its balance sheet? A. Retail B. Wholesale C. Manufacturing D. service
B-Marts' large proportion of merchandise held on consignment from suppliers. Which account balance assertion for inventory would this cause to be most at risk? Select one: a.Presentation. b.Cut-off . c.None of the given answers is correct. d.Existence.
Accounting for Merchandising Businesses and Inventory and Assets Define the following: Cost of goods sold Credit memo Credit terms Debit memo FIFO FOB Gross profit Invoice LIFO Net sales Periodic inventory Perpetual inventory Sales Selling expense Subsidiary ledger Trade discount Weighted average
Sales revenue Purchases Net income as a percent of sales revenue Beginning inventory Expenses including income taxes Tax rate a. Required a. Prepare the company's single-step income statement. b. Prepare the journal entry at period-end to eliminate beginning inventory and to record ending inventory. Note: Do not use negative signs with your answers. Income Statement Sales revenue Cost of goods sold: Beginning inventory Plus: Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross margin Expenses Income before taxes Income taxes Net income $ $ $440,000 $308,000 $ 15% $55,000 $99,000 25% 440,000 55,000 308,000 X 0 x 0 x 0 x x 0 x 0 x 0 x
Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Comparing periodic and perpetual inventory systems For each statement below, identify whether the statement applies to the periodic inventory system, the perpetual inventory system, or both. a. Normally used for relatively inexpensive goods. b. Keeps a running computerized record of merchandise inventory. c. Achieves better control over merchandise inventory. d. Requires a physical count of inventory to determine the quantities on hand. e. Uses bar codes to keep up-to-the-minute records of inventory.
Subject : Accounting You just took a new job as a controller of a large company that purchases and sells surf boards (has inventory). The owner has asked you to advise her on how she should select the correct inventory valuation method for the inventory (LIFO, FIFO and Weighted Average). What would be your response?
Select all that apply Determine which of the following statements are correct regarding the difference between physical flow and the cost flow of inventory Check all that apply) A business may adopt any cost flow assumption when accounting for perishable sems Perishable-items Usually have an actual physical flow of FIFO Penshable items neve an actual physical flow of LIFO Cost flow in an assumption about which goods/items are sold Physical flow refers to the actual movement of goods
I
Which of the following is not a step in the retail inventory method process? a.Compute the cost of goods available for sale. b.Compute the ending inventory at retail by subtracting sales at retail from goods available for sale at retail. c.Estimate the cost of the ending inventory by multiplying the ending inventory at retail by the cost-to-retail ratio. d.Compute the cost-to-retail ratio.
You have been asked by the financial vice president to develop a short presentation on the LCNRV method for inventory purposes. The financial VP needs to explain this method to the president because it appears that a portion of the company’s inventory has declined in value. Instructions The financial vice president asks you to answer the following questions. a. What is the purpose of the LCNRV method? b. What is meant by “net realizable value”? c. Do you apply the LCNRV method to each individual item, to a category, or to the total of the inventory? Explain. d. What are the potential disadvantages of the LCNRV method?