In Periods of Rising Prices, the Inventory Method Which Results

question 46

Multiple Choice

In periods of rising prices, the inventory method which results in the inventory value on the statement of financial position that is closest to current cost is the

• A) FIFO method.
• B) specific identification method.
• C) average-cost method.
• D) tax method.

---

Definitions:

Cash Inflows

Money received by a business, typically from operations, investments, or financing.

Completing Transactions

The process of finalizing a deal or sale, ensuring all necessary steps and documents are completed and approved.

Financing Activities

Transactions related to borrowing, repaying debts, issuing stocks, and paying dividends that affect a company's cash flow.

Collecting Cash

the process of receiving payment from customers or clients, often involving invoicing, payment processing, and accounting.