Which of the following inventory costing methods results in the lowest value of ending inventory during a period of rising inventory costs?
A) specific identification
B) weighted-average
C) last-in, first-out
D) first-in, first-out
C) last-in, first-out
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Which of the following accounts is classified as an asset?
a. Accounts Payable b. Prepaid Insurance c. Rent Expense d. L. Vanna, Capital
Exhibit 20-4 On January 1, 2016, Average Leasing Company entered into a direct financing lease with a lessee, Lenny Company. The lease agreement calls for five equal annual payments of $75,000 at the beginning of each year with the first payment due on January 1, 2016. The leased property has an estimated residual value of $10,000, which Lenny does not guarantee. The property remains the property
of Average at the end of the lease term. Average desires a 12% rate of return. Present value factors for a 12% interest rate are as follows: Present value of $1 for n = 1 0.892857 Present value of $1 for n = 5 0.567427 Present value of an ordinary annuity for n = 5 3.604776 Present value of an annuity due for n = 5 4.037349 ? Refer to Exhibit 20-4. What is the cost of the leased property to Average (round the answer to the nearest dollar)? A) $308,475 B) $302,801 C) $276,032 D) $270,358
The difference between common and preferred stock is that the latter is a debt instrument, whereas the former represents an equity interest in the company
a. True b. False Indicate whether the statement is true or false
The following details are provided by Doppler Company
Initial investment $2,020,000 Discount rate 12% Yearly cash flows 1 $210,000 2 $414,000 3 $414,000 4 $414,000 5 $210,000 Present Value of $1: 10% 11% 12% 13% 1 0.909 0.901 0.893 0.885 2 0.826 0.812 0.797 0.783 3 0.751 0.731 0.712 0.693 4 0.683 0.659 0.636 0.613 5 0.621 0.593 0.567 0.543 Calculate the NPV of the project. A) $(959,500 ) B) $(825,370 ) C) $1,015,050 D) $252,500