Which of the Following Statements Is Incorrect

question 3

Multiple Choice

Which of the following statements is incorrect?

• A)A year-end purchase of inventory increases the LIFO cost of goods sold when unit costs are increasing.
• B)A year-end purchase of inventory increases the FIFO ending inventory when unit costs are increasing.
• C)The choice of an inventory costing method is dependent on the actual flow of goods when inventory is sold.
• D)A year-end purchase of inventory has an impact on the weighted-average ending inventory when unit costs are increasing.

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds in its treasury.

Paid-In Capital

Refers to the amount of money that a company's shareholders have invested through the purchase of shares.

Reissued

Describes securities or other financial instruments that have been sold, recalled, and then sold again to the public.

Stock Dividend

A distribution by a company to its shareholders through extra shares instead of monetary payment.