_____ Is Not an Acceptable Means of Asset Valuation

question 64

Multiple Choice

_____ is not an acceptable means of asset valuation.

• A)Gross book value at future cost
• B)Gross book value at historical cost
• C)Net book value at current cost
• D)Net book value at historical cost

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Definitions:

Periodic LIFO

An inventory valuation method applied at the end of an accounting period that assumes the last items added to inventory are the first sold.

Ending Inventory

The total value of unsold goods held by a company at the end of an accounting period.

Inventory System

Methods and procedures used to track materials, work-in-progress, and finished goods from acquisition through sale.

Weighted-Average

A calculation method where different data points are given different weights, often used in inventory valuation and cost accounting.