You Are the Lucky Student of a Wacky Professor Who

question 6

Multiple Choice

You are the lucky student of a wacky professor who develops a time machine. He asks if you will test it with him. You get in, and there is an immediate glitch-the date readout fails so that when you land, you are not sure what era you are in. Your professor begins to panic, but you see something that tells you are in the Cenozoic era. Which of the following could it be?

• A) a rabbit eating a daisy
• B) a water lily floating in a pond
• C) masses of green ferns with dragonflies hovering above them
• D) a bee pollinating a flower

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Definitions:

Periodic Inventory System

An accounting method where inventory levels and the cost of goods sold are determined at the end of the accounting period.

Average Cost

The total cost of producing goods divided by the number of goods produced, representing the per-unit cost.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, after accounting for sales and new purchases.

LIFO Cost Method

A method of inventory valuation where the last items added to the inventory are considered the first ones sold.