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The inventory method which results in the inventory value on the balance sheet that is closest to current cost is the?
Wiki User
∙ 14y ago
FIFO
Wiki User
∙ 14y ago
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What is the inventory valuation method that results in the lowest taxable income in a period of inflation?
LIFO method
Which of these results from the mobility of production that characterizes the current global economy?
outsourcing
What does the word 'inventory' mean and why is it important to a business?
Inventory is the total collection of stock that a business has at a given time. Different businesses have different kinds of stock, depending upon what they sell or do. Shoe stores stock shoes, grocery stores stock groceries, car washes stock detergent, and so forth. Inventory is important because if you don't have enough you cannot meet the needs of your customers, and if you have too much, then you have invested excess money in your inventory, which is inefficient and also results in higher storage costs and higher inventory taxes. So you need to have the right amount of inventory.
Write all the Differences between balance of trade and balance of payment in tabular form?
In order to examine a country's position in international trade, it is useful to consult two of the most frequently used statistics, the balance of trade and the balance of payments. When you hear on the news about the U.S. "trade balance," what you are usually hearing about is the merchandise trade balance, which is the difference between a nation's exports and imports of merchandise. A "favorable" merchandise balance of trade, or trade surplus, occurs when a country's exports exceed its imports. A "negative" balance of trade, or trade deficit, occurs when a country's imports exceed its exports. From the mid-1970s, throughout the 1980s and into the 1990s, the United States has run persistent trade deficits. Economists disagree as to the effects this has had on the economy, but it is certain that these deficits allowed foreigners to accumulate U.S. dollars earned in payment for products that Americans imported The balance of trade, however, is not the whole picture; it includes only purchases and sales of merchandise. The complete summary of all economic transactions between a country and the rest of the world--involving transfers of merchandise, services, financial assets and tourism--is called the balance of payments. Simply, any transaction that results in money flowing into the country is a balance of payments credit, and anything that draws money out of the country is a balance of payments debit. Balance of payments deficits, where the amount of money leaving the country is greater than the amount flowing in, need to be financed; extra money has to come from somewhere. Usually, payments deficits are financed by borrowing money from overseas. The balance of payments for a country is separated into two main accounts: the current account and the capital account. The current account records sales and purchases of goods, services and interest payments. The entire merchandise trade balance is contained in the current account. The capital account deals with investment items, like whole companies, stocks, bonds, bank accounts, real estate and factories. Thus, if you bought a parachute from a factory in Germany, your purchase would be recorded in the current account. But if you bought the entire parachute factory, your purchase would be in the capital account. The balance of payments is influenced by many factors, including the financial and economic climate of other countries. For example, if other countries want the services of U.S. doctors, bankers, lawyers, accountants, engineers, entertainers and other service-providers, that demand will play a significant role in the U.S. balance of payments. Large amounts of money flow between nations in payment for such services, even if no merchandise is exchanged. In 1991, service exports accounted for over one-quarter of total U.S. export
Explain why an economy income must equal it's expenditure?
An economy's income must equal it's expenditure to keep its budget in balance. If the income is less, it results in debt which eventually has to be paid back.
An overstatement of ending inventory in one period results in?
An overstatement of ending inventory in one period results in
When the concept of conservation is applied to the Balance Sheet it results in?
When the concept of conservation is applied to a balance sheet it results in an understatement of assets.
What will occur if the endocrine system is out of balance?
If the endocrine system is out of balance, the body is out of balance and illness results.
What inventory cost methods results in lowest net income during a period of rising inventory costs?
Last-in, first-out (LIFO)
What results in crediting the checkbook balance?
Deposit.
How do you get net fixed assets on a pro forma balance sheet?
Fixed assets are considered non-current assets on the Pro Forma balance sheet. Pro forma sheets are done prior to a planned merger, acquisition, and predicts the anticipated results of the action.
A state that is ultimately reached which results in balance is?
equilibrium :)
What is the difference among psychological test inventory and scale and battery?
The test inventory gives an outlook of the past results. The battery and scale are future tests that need to be done.
What are the results of breeding current and tree dragons in DragonVale?
Results of current and tree dragons can be mud, crystal, or seaweed dragons.
What is the inventory valuation method that results in the lowest taxable income in a period of inflation?
LIFO method
Why is it important always to use the same balance during the course of an experiment?
Different balances might display different results. Therefore, using the same balance will keep your results accurate.
What is the GAAP method for determining what inventory is obsolete or slow moving?
The GAAP method for obsolete or slow moving inventory is to account for all inventory using either market value or cost method. The method which results in the lower amount is the one that is used.
