If Ben Stewart Has a Checking Account at First Bank

question 65

Multiple Choice

If Ben Stewart has a checking account at First Bank:

• A)the relationship between Ben and his bank is based primarily on their contractual agreement.
• B)First Bank is a creditor and Ben is a debtor.
• C)Ben is an agent of First Bank.
• D)All of these.

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Definitions:

First-In, First-Out Method

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

Conversion Costs

The sum of labor and overhead costs necessary to convert raw materials into finished goods.

Direct Materials

Raw materials that are consumed in the manufacturing process and are directly incorporated into the finished product.

Weighted-Average Method

An inventory costing method that assigns the average cost of goods available for sale to both ending inventory and cost of goods sold.