Question
In a period of rising prices and stable inventory
quantities, which of the following best describes the effect on gross profit of using LIFO as compared to FIFO?Solution
Compared to FIFO, Cost of goods sold under LIFO will be higher because the most recent higher costs units are assumed to be the first units sold. Higher COGS under LIFO will result in lower gross profit (revenue – cost of goods sold)
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Invest Rs. 1,800 at an annual compound interest rate of 'R%.' After two years, the interest accrued is Rs. 792. Determine the rate 'R.'
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The difference between the compound interest compounded annually and simple interest on a sum at 10% p.a. for 2 years is Rs. 210. Find the sum.
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