In a Period of Rising Prices, the Inventory Method Which

question 38

Multiple Choice

In a period of rising prices, the inventory method which tends to give the highest reported inventory is

• A) FIFO.
• B) moving average.
• C) LIFO.
• D) weighted-average.

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Definitions:

Services Rendered

Services rendered refer to the completion and provision of services agreed upon between a provider and a recipient.

Undisclosed Principal

A party in a contractual agreement whose identity is not revealed to the third party by the agent during the time of the agreement.

Partially Disclosed Principal

A principal whose identity is not known by a third party, although the third party is aware that the agent is making an agreement on behalf of a principal.

Vicariously Liable

A legal principle under which an individual or entity can be held legally responsible for the actions of another, typically in an employer-employee relationship.