A Method of Allocating Merchandise Cost That Assigns the Most

question 42

Multiple Choice

A method of allocating merchandise cost that assigns the most recent purchased costs to the ending inventory shown on the balance sheet is called the

• A) last-in, first-out method.
• B) first-in, first-out method.
• C) specific identification method.
• D) weighted-average method.

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Definitions:

Taxpayers

Persons or organizations required to remit taxes to a government at the federal, state, or local level.

Tax Credits

Amounts that taxpayers can subtract directly from the taxes they owe to the government, rather than from taxable income.

Form 1040EZ

A simplified tax form for individuals with uncomplicated tax situations, no longer in use after 2018.

Tax Liability

The total amount of taxes owed by an individual, corporation, or other entities to the tax authorities after all applicable deductions, credits, and exemptions.