Which of the Following Statements Regarding Inventories Is Correct

question 56

Multiple Choice

Which of the following statements regarding inventories is correct?

• A)FIFO assumes that the costs of the earliest goods acquired are the last to be sold.
• B)It is generally good business management to sell the most recently acquired goods first.
• C)Under FIFO, the ending inventory is based on the latest units purchased.
• D)FIFO seldom coincides with the actual physical flow of inventory.

---

Definitions:

Enslaved Africans

African people who were forcibly taken from their homelands, transported primarily to the Americas, and sold into slavery from the 16th to the 19th centuries.

Charleston

A historic city in South Carolina, known for its rich colonial and Civil War history.

Convicts

Individuals found guilty of a crime and sentenced to imprisonment or, historically, transported to penal colonies.

English Laws

The body of legal norms and statutes that originated and were developed in England, forming the basis of the common law legal system.