Ralph owns a lumber yard and has a $500,000 purchase order from a construction company. His cost of goods sold for this order is $300,000. Because his company needs working capital, the most logical loan for the lumber yard would be to use
A. an equipment-based loan.
B. factoring.
C. purchase-order financing.
D. asset-based financing.
Answer: C
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Both U.S. GAAP and international financial reporting standards (IFRS) require the use of the lower-of-cost-or-market rule to value inventories
a. True b. False Indicate whether the statement is true or false
If the sales effect for period 5 is $125 million and the carryover effect is 0.25, calculate the total sales impact for period 5
A) $500 million B) $31.25 million C) $166.67 million D) $93.75 million E) $156.25 million
A company that uses the net method of recording purchases and a perpetual inventory system purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the payment on July 28 is:
A. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. B. Debit Merchandise Inventory $1,600; credit Cash $1,600. C. Debit Accounts Payable $1,800; credit Cash $1,800. D. Debit Cash $1,600; credit Accounts Payable $1,600. E. Debit Accounts Payable $1,568; debit Discounts Lost $32; credit Cash $1,600.
Acquisition of services in many organizations is referred to as ______.
a. service contracting b. procurement c. sourcing d. acquisition