An Example of an Investment Is

question 166

Multiple Choice

An example of an investment is

• A) the purchase of a share of Google stock.
• B) the purchase of an Exxon Mobil bond.
• C) the purchase of a Hewlett Packard laser printer for use by a business.
• D) all of the above.

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Definitions:

Earliest costs

This term is not standard in financial terminology; it may refer to historical costs, which are the original monetary value of an economic item.

Perpetual inventory system

An inventory management system where updates are made continuously to record sales and purchases of inventory.

FIFO inventory cost method

A method to assign costs to inventory that assumes the first items purchased are the first ones sold, primarily affecting the cost of goods sold and ending inventory value.

Cost of merchandise sold

The total cost incurred by a company to sell its merchandise during a specific period, including the cost of the goods themselves plus any additional costs related to their sale.