<span>FIFO (First in, First Out) reports higher gross profit and net income than the LIFO (Last In, First Out) method when prices are increasing. The FIFO method refers to an inventory system wherein the first items purchased are thought to be sold while the most recent purchases make up the ending inventory. On the other hand, the LIFO method assumes the opposite. The ones sold are the most recent purchases while the earlier purchases are included in the ending inventory. </span>
Answer: See explanation
Explanation:
a. State and describe the concept that leads to "conflict of goals between a firm's managers and its shareholders. Give a modern day example of this concept, and discuss some potential solutions.
This is referred to as the agency problem. This brings about conflict of goals between the manager and the shareholders. An example is when the managers use the resources of the company for their own personal benefits or in a scenario whereby the managers fake the earnings so that the stock prices will rise temporarily.
b. State and describe the concept that states, "factors of production are somewhat immobile." Give an example with detail.
This is referred to as imperfect market theory. When transferring labor, capital or other resources, there are costs attached to the transfer and restrictions as well. .
Answer:
Sales Revenue – Cost of Goods Sold = gross profit
Explanation:
In order to determine the income statement components, the following component is shown
Gross profit = Sales revenue - the cost of goods sold
where,
Sales revenue represents the sales of the business organization
And, the cost of goods sold would be
= Opening inventory + Purchase - ending inventory
By deducting the cost of goods sold from the sales revenue the gross profit can arrive
Answer:
True
Explanation:
Balance sheet is the financial report of an organization that includes investments, liabilities, assets wealth, overall debt, etc. during a given time.
The income statement is one of the company's financial statements that indicates the company's profits and expenditures for a specific period of time. This shows how the profits are converted into net revenue or net income.
They are using the Dual income and no kids method
