Inventory Costing Methods Place Primary Emphasis on Assumptions About

question 23

Multiple Choice

Inventory costing methods place primary emphasis on assumptions about:

• A) flow of goods.
• B) flow of costs.
• C) flow of goods or costs depending on the method.
• D) flow of values.

---

Definitions:

Journal Entries

Records of financial transactions in the accounting system in the order in which they occur.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, used to verify the equality of debits and credits and prepare financial statements.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, preparing the company's books for the next period.

Net Sales

The sum a company receives from its sales, after accounting for returns, compensations for damaged or missing items, and discount deductions.