Question 761

The manager of Liz-Beth Co. is given a 2% bonus based on income before taxes. The net income after taxes is $11,200 if Liz-Beth uses the FIFO method for inventories. The tax rate is 30%. Cost of goods sold would have been $10,000 higher if LIFO is used. How much is the difference in the manager's bonus if LIFO is used instead of FIFO?
  • Question 762

    Northern Company reports income unrealized gains (losses) on its short-term investment portfolio in
    Other Comprehensive Income (OCI). Its investment portfolio is classified as:
  • Question 763

    Banks are required by law to keep on hand to back up its deposits a minimum reserve of their checking deposits. This reserve is known as:
  • Question 764

    Which condition in general gives industry participants more pricing power?
  • Question 765

    The quantity of real money that people plan to hold depends on these factors:
    I). The price level.
    II). The nominal interest rate.
    III). Real GDP.
    IV). Financial innovation.