Cost Account Teacher help Which of the following would affect the gross profit rate? (Assume salesremain constant.)a) An increase in advertising expense.b) A decrease in depreciation expense.c) An increase in the cost of goods sold.d) A decrease in insurance expense.

The correct answer is:c) An increase in the cost of goods sold. Explanation:The gross profit rate…

Answered: Which of the following would affect the…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 11Q

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In a period of rising prices,a. cost of goods sold under LIFO will be less than under FIFO.b. gross profit under FIFO will be higher than under LIFO.c. LIFO inventory will be greater than FIFO inventory.d. net income under LIFO will be higher than under FIFO.
What does an increase in the allowance for receivables result in? A A decrease in current liabilities B An increase in net profit C An increase in working capital D A decrease in working capita
How would reported income differ if LIFO rather than FIFO were used when purchase prices are rising? When purchase prices are falling?
Gross profit is: The amount left over after cost of goods sold is subtracted from net sales. A.Net sales less operating expenses. B.Sales less sales discount. C.less sales discounts. D.Net sales less selling expenses
Under the LIFO cost flow assumption during a period ofinflation, which of the following is false? A. Cost of goods sold will be lower than under FIFO B. Gross margin will be lower than under FIFO C. Income tax expense will be lower than under FIFO D. Ending inventory will be lower than under FIFO
1.Which of the following may not result to the amount of cost of sales? a.Net purchases less net increase in inventory b.Net decrease in inventory plus net purchases c.Total goods available for sale less beginning inventory d.Total goods available for sale less ending inventory
For each of the following situations, indicate whether FIFO, LIFO, or weighted average applies: a. In a period of falling prices, net income would be highest. b. In a period of falling prices, the unit cost of goods would be the same for ending inventory and cost of goods sold. c. In a period of rising prices, net income would be highest. d. In a period of rising prices, cost of goods sold would be highest. e. In a period of rising prices, ending inventory would be highest.
Gross profit will result if: O Sales revenues are greater than operating expenses. Operating expenses are greater than cost of goods sold. Sales revenues are greater than cost of goods sold. O Operating expenses are less than net income.
A decrease in the allowance for doubtful debts would result in O a reduction in gross profit an increase in net profit an increase in gross profit O a reduction in net profit
What is the difference between a sales return and a sales allowance?
How do you calculate the markup on cost of goods sold? Is the markup pure profit? Explain.
The original cost of an item of inventory is above its replacement cost. The item s replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at: a. Net realizable value. b. Original cost. c. Replacement cost. d. Net realizable value less normal profit margin.

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Which of the following would affect the gross profit rate? (Assume sales remain constant.) a) An increase in advertising expense. b) A decrease in depreciation expense. c) An increase in the cost of goods sold. d) A decrease in insurance expense.