Of the Following Businesses, Which One Would Not Be Likely

question 29

Multiple Choice

Of the following businesses, which one would not be likely to use the specific identification method for inventory costing?

• A)piano store
• B)car dealership
• C)antique shop
• D)grocery store

---

Definitions:

Past Transactions

Financial activities or deals that have been completed in the past, impacting the financial position of a business.

Direct Method

A cash flow statement approach that lists major categories of gross cash receipts and payments, providing a clearer view of a company's cash flow from operational activities.

Cash Flow Statement

A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Accrual-Basis Revenues

Earnings recorded when they are earned, regardless of when the cash payment is received, under the accrual method of accounting.