what is the effect of purchase supples on accout on current ratio?

Q: Why does Sales discounts are variable consideration?

A: Variable considerations: Variable consideration refers to the amount that the corporation is…

Q: Explain the law of one price in the perspective of the following: a) Purchasing power parity b)…

A: Law of One Price: It is stated in the law of one price that, in the absence of friction between…

Q: What is purchasing power parity?

A: Purchasing power parity (PPP): It is one well known macroeconomic investigation metric for…

Q: What is Dollar-Value LIFO Retail Method ?

A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…

Q: a. what is the difference between the discount rate used for net present value and the internal rate…

A: Discount rate used for net present value is rate which investor want to earn from a project . It is…

Q: What is market/book (M/B) ratio?

A: Introduction: Market value is nothing but the value derived when the stock price is multiplied by…

Q: How might a company obtain a price index in order toapply dollar-value LIFO?

A:

Q: Under what circumstances is relative sales value anappropriate basis for determining the price…

A: Relative sales value is an appropriate basis for pricing inventory when a group of changing units is…

Q: What is the d market book ratio?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What is the current market view on USD/JPY? (Will it appreciate and which depreciate? and why?)

A: USD/JPY will be reflecting the exchange rate of Japanese currency with respect to 1 American dollar.…

Q: Explain the argument for and against the use of net price method with respect to purchase discounts?

A: The Net Price Method (NPM) provides information about the purchase discounts lost by the company and…

Q: What is ratio on equity?

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: How is standalone selling price defined?

A: Performance Obligation: Performance obligation refers to the obligation that the seller to provide…

Q: What is the difference of Cost of Equity and the required rate of return on equities?

A: The amount of money that would be transferred to a company's shareholders if all of the company's…

Q: The difference between gini coefficient of market income and gini coefficient of disposable income…

A: The difference between gini coefficient of market income and gini coefficient of disposable income…

Q: What is the net price and trade discount

A: The offering of multiple trade discounts by the business on the product sold to the customer is…

Q: What is the lnventory·turnover ratio?

A: Inventory turnover ratio: Inventory turnover ratio indicates how many times a corporation has sold…

Q: How do you report a gain if a portion of the inventory has been sold?

A: Inventory when purchased is recorded in the financial statements {Part of Cost of Goods sold}…

Q: Compare standard quantity discounts to cumulative quantity discounts.

A: Cumulative Quantities Discount (CQD) is a system intended to recompense consumers after a definite…

Q: On what concept is the price-earnings multiple valuation approach based?

A: Price earning ratio is computed by dividing the market price of the share by the earnings per share.

Q: hat is the current market view on AUD/USD? (Will it appreciate and which depreciate? and why

A: The exchange rate depends on the interest rate in the market and inflation in the market and goes up…

Q: What is the Fixed Charge Coverage Ratio? • What is the Earnings Yield Ratio?

A:

Q: Discuss the influence of alternative inventory cost flow assumptions and depreciation methods on…

A: Step 1 Turnover ratios are the sales proportionate to the inventory, mainly which states the outflow…

Q: Which of the following transfer price approaches is used when the transfer price is set at the…

A: Transfer Price  : Price at which related parties transact with each other is known as transfer…

Q: how is the selling price computed

A: Formula: Selling price=Cost100%-Gross profit ratio

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: How is the times-interest-earned ratio calculated, and what does it evaluate?

A:

Q: purchase on account on effect on current ratio

A: Current ratio is the ratio of current assets to current liabilities.  Current Ratio = Current Assets…

Q: It is the net after tax ratio with sales revenues?

A: Sales revenue is the revenue which has been earned by the company for the selling of the products or…

Q: What amount should be credited to Share Premium?

A: Computation of fair value of Net identifiable assets Particulars Amount Current Assets…

Q: How sensitive is the NPV to changes in the quantity sold?

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: Which of the following is a solvency ratio?   a. Times interest earned. b. Inventory turnover ratio.…

A: The correct option is (A) Times Interest Earned   Explanation: This ratio is the measure of a…

Q: These investments are initially recorded at purchase price plus transaction costs

A: These investments are initially recorded at purchase price plus transaction costs Answer - Financial…

Q: Briefly explain Purchasing Power Parity?

A: Purchasing Power Parity (PPP) is a theory of exchange rate determination. Purchasing power parity is…

Q: Are debtors calculated at selling price or finished goods price? and why?

A: The word debtor comes from the word debt which means a company or an individual having a debt…

Q: AF’s inventories are valued at the lower of cost or net realizable value. Does thisapproach differ…

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: for Market Price per S

A: Step 1 The market price or market capitalization of a company is calculated using the market price…

Q: . The word market as used in “the lower of cost or market” generally meansa. net realizable value.b.…

A: Lower of Cost or Market :- The lower of cost and market means pricing the inventory with the cost…

Q: What is premium on forward rate?

A: A forward rate is referred as an interest rate which is applicable on financial transactions which…

Q: What is the difference between order discounts and volume discounts?

A: there are different types of discount from the cells that customer can earn close discount are…