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If a company uses the periodic inventory system what is the impact on net income of including goods in transit fob shipping point in purchases but not ending inventory?
Understate net income
Why does net income change with the FIFO?
FIFO (first in first out) is a method of account for inventory. With FIFO, if inventory costs are increasing your cost of goods sold will be lower than under the LIFO (last in first out) method. If inventory costs are increasing, FIFO will result in higher net income (lower COGS) than LIFO. If inventory costs are decreasing, FIFO will result in lower net income (higher COGS) than LIFO.
What inventory cost methods results in lowest net income during a period of rising inventory costs?
Last-in, first-out (LIFO)
What happens to a net personal income with the government lowers taxes?
If the government lowers your taxes your NET income increases.
If merchandise inventory is being valued at cost and the price level is steadily rising the method of costing that will yield the highest net income is?
The method of costing that will yield the highest net income is FIFO. FIFO stands for first in, first out.
If a company uses the periodic inventory system what is the impact on net income of including goods in transit fob shipping point in purchases but not ending inventory?
Understate net income
The adjusting entry to adjust supplies was omitted at the end of the year This would effect the income statements by having?
expenses understated and therefore net income overstated
What happens to net personal income when government lowers taxes?
your net income increases, but your income tax decreases
What happens to net personal income when the government lowers taxes?
your net income increases, but your income tax decreases
A company's month-end adjusting entry for Insurance Expense is 1000 If this entry is not made then expenses are understated by 1000 and net income is overstated by 1000?
Yes this is right statement as if some expenses are forgot to record it overstated the net income and reduces the expenses but in actual there is less net income then shown in income statement.
Why does net income change with the FIFO?
FIFO (first in first out) is a method of account for inventory. With FIFO, if inventory costs are increasing your cost of goods sold will be lower than under the LIFO (last in first out) method. If inventory costs are increasing, FIFO will result in higher net income (lower COGS) than LIFO. If inventory costs are decreasing, FIFO will result in lower net income (higher COGS) than LIFO.
What inventory cost methods results in lowest net income during a period of rising inventory costs?
Last-in, first-out (LIFO)
What happens to a net personal income with the government lowers taxes?
If the government lowers your taxes your NET income increases.
Does inventory goes into the cash flow statement?
Yes, changes in inventory do appear in the cash flow statement. Inventory is a current asset, and changes in inventory, such as purchases or sales, have an impact on cash flow from operating activities. An increase in inventory is subtracted from net income to calculate cash provided by operating activities, while a decrease in inventory is added back to net income.
If merchandise inventory is being valued at cost and the price level is steadily rising the method of costing that will yield the highest net income is?
The method of costing that will yield the highest net income is FIFO. FIFO stands for first in, first out.
Formula for net income?
Net income percentage = Net income / Revenue
Which section of the income statement does not report net of income taxes or net of income?
Trading account statement does not report net of income taxes or net of income.
