0
What is the probable effect on a firm's cash position if there are rapidly rising sales?
Wiki User
∙ 15y ago
What would be the probable effect on a firm's cash position of the following events? a. Rapidly rising sales b. A delay in the payment of Accounts Payable c. A more liberal credit policy on sales (to the firm's customers) d. Holding larger inventories
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What is the FIFO method for inventory valuation may increase income tax due as well as showing the true financial position of a business with respect to inventory during the period of rising prices?
As in Period of Price rising, current market price of the inventory will be higher than the previous market price on which inventory was purchased by the business. If using FIFO method the lower value of inventry will be rocorded then the value of inventory consumed will not meet the current market position. As a result all the Expenses shown in the financial statements will be lower, profit will be higher which may cause increase in income tax due and the ending inventry will show a higher value. Newer Post
Why would management prefer to use LIFO over FIFO in periods of rising price?
Using lifo in rising prices has benefit that it will charge latest costs which will reduce the profit and hence the tax charge as well.
Which is lifo or fifo if in a period of rising prices ending inventory would be highest?
fifo
Are MT property taxes paid in advance or in arrears?
29 Rising Bull Road, Big Sky, Montana
What inventory cost methods results in lowest net income during a period of rising inventory costs?
Last-in, first-out (LIFO)
What was an effect of the union's navel blockade of the confederacy?
Rapidly rising food prices across the South.
What was an effect of the Union's navel blockade of the Confederacy?
Rapidly rising food prices across the South.
What would lead to an increase in the increase in the inflation rate?
Rapidly rising production costs
What happens when rapidly falling cold air meets rapidly rising hot air?
A tornado forms
What was the effect of the union's naval blockade of the confederacy?
Rapidly rising food prices across the SouthThe Confederates were unable to import the war supplies they couldn't manufacture themselves, having no industrial base.
What was an effect of the naval union blockade of the confederacy?
Rapidly rising food prices across the SouthThe Confederates were unable to import the war supplies they couldn't manufacture themselves, having no industrial base.
What was An effect of the union naval blockade of confederacy?
Rapidly rising food prices across the SouthThe Confederates were unable to import the war supplies they couldn't manufacture themselves, having no industrial base.
Is the number of people per household rising rapidly in the US and Great Britain?
No
What would lead an increase to the inflation rate?
Rapidly rising production costs
What would lead an increase in the inflation rate?
Rapidly rising production costs
What would lead to an increase inflation rate?
Rapidly rising production costs
Would lead to an increase in the inflation rate?
Rapidly rising production costs
