Effie Company Uses a Periodic Inventory System

question 2

Multiple Choice

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2015 are as follows: An end of the month (1/31/15) inventory showed that 160 units were on hand. How many units did the company sell during January, 2015?

• A)60
• B)160
• C)200
• D)240

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Definitions:

Financial Assets

Assets that derive value from a contractual promise or ownership right, including stocks, bonds, derivatives, and bank balances.

Consumption Timing

The decision-making process regarding when to spend money on goods and services, balancing current consumption against future needs.

Allocation Of Risk

Allocation of Risk involves distributing exposure to financial risks among various participants or financial instruments to manage potential losses more effectively.

Ownership And Control

Refers to the legal and operational authority over assets or business, which may not always coincide, especially in corporations with dispersed shareholders.