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NEW QUESTION: 1
A. Option A
B. Option B
C. Option C
D. Option D
E. Option E
Answer: A,B,E
NEW QUESTION: 2
A firm's tax rate is 30%. If the beginning inventory was overstated by 50, the purchases understated by 30 and the ending inventory overstated by 10, the income is ________.
A. understated by 7
B. understated by 10
C. overstated by 12
D. overstated by 21
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Ending inventory = beginning inventory + Purchases - COGS Hence, in this case, COGS is overstated by
50 + (-30) - 10 = 10. Therefore, income is understated by 10*(1-tax rate) = 7. It should be remembered that implicit in the use of the above inventory equation is the assumption that there have been no write-downs or write-ups in the inventory.
NEW QUESTION: 3
Which of the following four plant types for the theory of constraints processes one raw material into one final product?
A. V-plant
B. T-plant
C. I-plant
D. A-plant
Answer: C
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