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Inventory increases when a company buys goods from another company or custumers return a good for a refund.
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Will a credit always decrease a cash account?
A cash account will always be decreased by a credit, but a credit will not always decrease a cash account. The only time a credit decreases cash is when the company pays out cash, whether it's to purchase supplies, inventory, or pay wages etc. Here is two examples of a credit in a transaction, one will decrease cash, the other will not. Company X buys $1,000 in inventory from Company Y and pays CASH. The debit for this transaction will increase inventory, the credit will decrease cash since company X is paying cash for this transaction. Using the same transaction however, changing Company X wants to purchase this inventory on "credit" the debit in this transaction as above will still increase inventory, however, since Company X has chosen to purchase this inventory on credit and not use cash and accounts payable will be set up and the credit will "increase" accounts payable. Remember, Assets will "always" increase with a debit and decrease with a credit. Liabilities will "always" decrease with a debit and increase with a credit.
In a period of rising prices the inventory method which tends to give the highest reported inventory?
Hi - in periods of rising prices, the FIFO (fist in, first out) will give the highest ending inventory. The other two options (LIFO last in first out) will give the lowest ending inventory and the average method will give between the two. Hope this helps!
What two interfaces are used to process Warehouse inventory in GCSS-Army?
AIT
What are the two ways you can account for ending inventory and cost of goods sold?
Following are two ways: 1 - LIFO 2 - FIFO
What are two reasons why a company should use a system of management accounts?
state two reasons why a company should use a system of management accounts
What are two possible reasons why mount Kilimanjaro's snow is melting?
two possible reasons are its hot and the mountain might be to high
How does the speed of sound through gas increase?
There are two reasons. those ARE TEMPERATURE AND MOLAR MASS.
History of inventory system?
The history of inventory systems depends on the type of inventory system being discussed. There are two main types of inventory systems, the perpetual inventory system and the periodic inventory system.
What are two reasons for the development of drug tolerance?
Repeated exposure to a stimulus could increase the development of drug tolerance.
Will a credit always decrease a cash account?
A cash account will always be decreased by a credit, but a credit will not always decrease a cash account. The only time a credit decreases cash is when the company pays out cash, whether it's to purchase supplies, inventory, or pay wages etc. Here is two examples of a credit in a transaction, one will decrease cash, the other will not. Company X buys $1,000 in inventory from Company Y and pays CASH. The debit for this transaction will increase inventory, the credit will decrease cash since company X is paying cash for this transaction. Using the same transaction however, changing Company X wants to purchase this inventory on "credit" the debit in this transaction as above will still increase inventory, however, since Company X has chosen to purchase this inventory on credit and not use cash and accounts payable will be set up and the credit will "increase" accounts payable. Remember, Assets will "always" increase with a debit and decrease with a credit. Liabilities will "always" decrease with a debit and increase with a credit.
What are the two main reasons why companies register on the JSE?
because they want to invest their shares|trading because they want to increase their shares
Give two possible reasons why their circuit does not work when they close the switch?
The cell has no more electricity and the bulb has blown.
What is the cause of the trade deficit?
The reasons may be attributed to exit of conventional industries, increase in defence budgetary expenditure and so on. There are other reasons as well which are not so relevant than the above two.
What is the difference between Days to sell inventory and Average age of inventory?
There is no different between the two measurement.
What were two reasons Americans thought the US needed additional possessions in the Caribbean and Pacific?
strengthen national defense increase colonial power
Is it possible to form a profitable company by merging two business failure companies?
It is possible to form a profitable company by joining two businesses. This should be done after evaluation of the reasons for failure and how joining is going to deal with these issues.
What does it mean when premiums are increasing in call options?
two possible reasons: 1. the underlying stock of the option is increasing in price value. 2. the volatility of the broad markets may be increasing. in this case, the stock may not even rise in price value but its call premiums would increase.
