The Majority of Federal Expenditures Is Spent on

question 121

Multiple Choice

The majority of federal expenditures is spent on

• A)Private sector purchases of goods and services.
• B)National Defense.
• C)Income transfers.
• D)Public sector purchases of goods and services.

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Definitions:

Weighted Average Cost Flow Assumption

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.

FIFO

An inventory valuation method where the first items produced or purchased are the first used or sold.

FIFO

"First In, First Out," an accounting method for valuing inventory where the first items placed in inventory are the first sold.