Which Statement Is Correct

question 63

Multiple Choice

Which statement is correct?

• A)A transfer with recourse means that the purchaser of the receivables takes the collection risk.
• B)A transfer without recourse means that the seller of the receivables takes the collection risk.
• C)Factoring with recourse reduces a current ratio that is >1.
• D)Factoring without recourse creates a liability on the balance sheet.

Describe the importance and use of the gross profit inventory method for valuing inventory.

Understand the application and implications of the lower of cost or market rule in inventory valuation.

Calculate inventory valuation using different methods like FIFO, LIFO, and weighted average under perpetual and periodic systems.

Analyze the effect of inventory valuation methods on financial statements and tax implications.

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Definitions:

Wrongful Dismissal

Termination of an employee's contract of employment in violation of the law or the terms of the contract itself.

Employment Relationship

A legal and formal association between an employer and an employee where both parties have specific rights and obligations.

Tortious Conduct

Behavior that constitutes a tort, actions that cause injury or harm to another person, leading to legal liability.

Independent Contractor

A person or entity contracted to perform work for another entity as a non-employee, retaining control over how the work is executed.