New inventory value = Initial Inventory - Cost of Goods Sold = $10,000 - $4,000 = $6,000.

Gross Profit is calculated as Sales minus Cost of Goods Sold, which is $60,000 - $40,000 = $20,000.

The first step an accountant should take is to check for arithmetic errors in the trial balance to identify discrepancies.

The first step to identify the error when the trial balance does not balance is to recalculate the totals to ensure accuracy.

The first step is to check for missing transactions, as this could cause the trial balance to be unbalanced.

All of the above reasons can cause a trial balance to not balance, indicating errors in the accounting records.

The total balance of the trial balance is $7,000 (credit) + $4,000 (debit) = $11,000.

The discrepancy is the difference between total debits and total credits, which is $100,000 - $95,000 = $5,000 debit.

If total debits equal total credits, the accounts are balanced.

First year's depreciation using double declining balance is calculated as (Cost x 2 / Useful Life) = ($50,000 x 2 / 10) = $10,000.

Higher ending inventory under FIFO leads to overstated assets on the balance sheet.

Using FIFO can lead to overstated inventory, understated expenses, and higher tax liabilities.

Switching to LIFO during inflation would decrease net income due to higher cost of goods sold.

Switching from LIFO to FIFO typically increases ending inventory values.

Annual depreciation expense is calculated as (Cost - Salvage Value) / Useful Life = ($10,000 - $1,000) / 5 = $1,800.

A current ratio of 2:1 indicates that the company has twice as many current assets as current liabilities, suggesting good liquidity.

The total cost of production is calculated by summing direct materials, direct labor, and manufacturing overhead.

In a deflationary environment, FIFO would likely result in higher profits because it matches older, lower costs against current revenues.

In a deflationary environment, FIFO would likely yield higher profits because it matches older, higher costs against revenues.

The income statement includes revenues and expenses to determine net income.

When a company pays off a liability, the Cash account is credited, and the liability account is debited to reduce the obligation.

When recording an expense, the expense account is debited.

Profit distribution in a partnership is typically based on the partnership agreement, which outlines the terms for sharing profits.

Profit sharing can be done equally, in proportion to capital contributions, or as specified in the partnership agreement.

The profit-sharing ratio is determined as per the partnership agreement made by the partners.

The Profit and Loss Appropriation Account is used to allocate the net profit among the partners as per the partnership agreement.

In a declining price environment, FIFO will result in a higher ending inventory value as it uses older, higher costs.

In deflation, FIFO will result in higher ending inventory values as it accounts for the older, cheaper costs first.

In a period of deflation, FIFO would likely show the highest net income as it matches older, higher costs against current revenues.

In a period of deflation, FIFO would likely yield a higher ending inventory value as it uses the cost of older, cheaper inventory.