Describing the factors that should be considered by tangier

Assignment Help Accounting Basics
Reference no: EM131570637

Problem -

Prepare a report for the president describing the factors that should be considered by Tangier in choosing between LIFO and FIFO.

An accounting intern for a local CPA firm was reviewing the financial statements of a client in the electronics industry. The intern noticed that the client used the FIFO method of determining ending inventory and cost of goods sold. When she asked a colleague why the firm used FIFO instead of LIFO, she was told that the client used FIFO to minimize its income tax liability. This response puzzled the intern because she thought that LIFO would minimize income tax liability.

Required: What would you tell the intern to resolve the confusion?

Reference no: EM131570637

Questions Cloud

Analyze the navigation and architecture : What were the main areas. You might break this down by how the site is organized. Elaborate some here, but it is not necessary to write pages and pages.
Prepare the necessary closing entries on december : Gerdes Psychological Services, Inc., closes its temporary accounts once each year on December 31. Prepare the necessary closing entries on December 31, 2015
What information is obtained from the diagnostic test : How does the test work?What information is obtained from the diagnostic test regarding the disease?
Technology and automobile industry : From observation and from a supply chain perspective, how has the market changed in the past 50, 10, 5 years for consumer goods industry, clothing, technology?
Describing the factors that should be considered by tangier : Prepare a report for the president describing the factors that should be considered by Tangier in choosing between LIFO and FIFO
Denote the row number and the column number of the square : A knight on a chessboard can move one space horizontally (in either direction) and two spaces vertically (in either direction) or two spaces horizontally.
Why does zeisler say pop culture is powerful : Who was Shakespeare's sister. Why have we never heard of her, or what she represents. Why does Zeisler say pop culture is powerful.
What are the issues facing the decision makers : How did organizational culture influence ethical decision making?What are the ethical issues?What are the issues facing the decision makers?
Show n people can divide cake using mathematical induction : Use mathematical induction to show that n people can divide a cake (where each person gets one or more separate pieces of the cake).

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd