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In distinguishing between sales and collateralized borrowings using receivables, the critical issue A) is whether the terms regarding the transfer were initiated by the transferor or transferee.
B) is whether the transferor surrenders control over the receivables.
C) comes down to how clearly the rights, etc. being retained are specified in the transfer agreement.
D) is whether any gain or loss related to the transfer is recognized in earnings.14.Reasons why companies might accelerate cash collections include the following except: A. B. Generally accepted accounting principles permit "off-balance sheet" treatment of factored receivables and collateralized borrowings, thus enabling management to "window dress" the company's financial position.C. D. A) The company may have an immediate need for cash but be short of it.
B) Generally accepted accounting principles permit "off-balance sheet" treatment of factored receivables and collateralized borrowings, thus enabling management to "window dress" the company's financial …show more content…
A) FIFO inventory = LIFO inventory X LIFO reserve
B) FIFO inventory = LIFO inventory/LIFO reserve
C) FIFO inventory = LIFO inventory - LIFO reserve
D) FIFO inventory = LIFO inventory + LIFO reserve21.The Xano Company reported merchandise inventory at LIFO of $450,000 on the year-end financial statements. The company also reported a LIFO reserve of $34,000. An estimate of the inventory balance if the inventory had been reported using the FIFO assumption is A) $382,000.
B) $416,000.
C) $461,000.
D) $484,000.22.As a firm liquidates old LIFO layers of inventory, the lower costs of the LIFO layers are matched against current sales dollars resulting in a profit margin that is A) inflated.
B) deflated.
C) lower than normal.
D) always the same as under FIFO.23.When the income effect of a LIFO liquidation is material, the SEC requires that the 10-K report disclose A) the dollar impact of LIFO liquidation on both a before- and after-tax basis.
B) the dollar impact of LIFO liquidation on the year-end inventory balance.
C) this fact following a prescribed
B) is whether the transferor surrenders control over the receivables.
C) comes down to how clearly the rights, etc. being retained are specified in the transfer agreement.
D) is whether any gain or loss related to the transfer is recognized in earnings.14.Reasons why companies might accelerate cash collections include the following except: A. B. Generally accepted accounting principles permit "off-balance sheet" treatment of factored receivables and collateralized borrowings, thus enabling management to "window dress" the company's financial position.C. D. A) The company may have an immediate need for cash but be short of it.
B) Generally accepted accounting principles permit "off-balance sheet" treatment of factored receivables and collateralized borrowings, thus enabling management to "window dress" the company's financial …show more content…
A) FIFO inventory = LIFO inventory X LIFO reserve
B) FIFO inventory = LIFO inventory/LIFO reserve
C) FIFO inventory = LIFO inventory - LIFO reserve
D) FIFO inventory = LIFO inventory + LIFO reserve21.The Xano Company reported merchandise inventory at LIFO of $450,000 on the year-end financial statements. The company also reported a LIFO reserve of $34,000. An estimate of the inventory balance if the inventory had been reported using the FIFO assumption is A) $382,000.
B) $416,000.
C) $461,000.
D) $484,000.22.As a firm liquidates old LIFO layers of inventory, the lower costs of the LIFO layers are matched against current sales dollars resulting in a profit margin that is A) inflated.
B) deflated.
C) lower than normal.
D) always the same as under FIFO.23.When the income effect of a LIFO liquidation is material, the SEC requires that the 10-K report disclose A) the dollar impact of LIFO liquidation on both a before- and after-tax basis.
B) the dollar impact of LIFO liquidation on the year-end inventory balance.
C) this fact following a prescribed