Describe the difference(s) between the periodic and the perpetual inventory accounting systems.
What will be an ideal response?
Under a perpetual system each purchase, purchase return and allowance, purchase discount, and cost for transportation-in is recorded in the merchandise inventory account. Under a periodic system, a separate temporary account is set up for each of these items. Because inventory is updated for each purchase and sale of merchandise, the perpetual inventory system yields more timely information for managers to better monitor and control inventory costs and levels.
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Addams, Inc., is preparing its master budget for the second quarter. The following sales and production data have been forecasted:?AprilMayJuneJulyAugustUnit sales ……400500520480540Finished goods inventory on March 31: 120 unitsRaw materials inventory on March 31: 450 poundsDesired ending inventory each month:Finished goods: 30% of next month's salesRaw materials: 25% of next month's production needsNumber of pounds of raw material required per finished unit: 4 lbs.How many pounds of raw materials should be purchased in April?
What will be an ideal response?
Generally, a creditor would rather be an unsecured creditor than a secured one
Indicate whether the statement is true or false
A controversial aspect of the Robinson-Patman Act is that it:
a. allows sellers to charge different prices for different buyers b. tends to over-stimulate competition c. discourages small retailers from being able to compete d. denies sellers some benefits of vertical integration e. all of the other choices
What is the purpose of a DBMS?
What will be an ideal response?