_____ Is the Field of Accounting That Develops Information for External

question 120

Multiple Choice

_____ is the field of accounting that develops information for external decision makers such as stockholders, suppliers, banks, and government regulatory agencies.

• A)Auditing
• B)Tax accounting
• C)Management accounting
• D)Financial accounting

---

Definitions:

Periodic Inventory System

An inventory valuation and management method where updates to inventory levels are made periodically at the end of a specific accounting period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Inventory Cost Flow Assumption

An accounting assumption that determines how the cost of inventory is allocated to the cost of goods sold and ending inventory.

Cost of Goods Available

The total cost of goods that are available for sale during a certain period, including goods purchased or manufactured.