Courtney McRae Started the Row-Your-Boat Paddle Boat and Row Boat

question 346

True/False

Courtney McRae started the Row-Your-Boat paddle boat and row boat business at a nearby lake resort. She wanted to combine her accounting degree with her love of the outdoors and fishing. One of her first business purchases was a computerized accounting system. She learned in her college classes that a good software system will eliminate accounting cycle steps and the time it takes for her to interpret the results. As she put it, "It should make the decisions for me!"

---

Definitions:

FIFO Method

"First In, First Out" inventory management system where the goods purchased or produced first are sold or used first.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Hammers

Tools consisting of a weighted "head" fixed to a long handle, used for driving nails into, or pulling them out of, a surface.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting period; LIFO stands for Last-In, First-Out.