Of the Following Companies, Which One Would NOT Likely Employ

question 60

Multiple Choice

Of the following companies, which one would NOT likely employ the specific identification method for inventory costing?

• A) art gallery
• B) farm implements dealership
• C) antique shop
• D) drug store

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Definitions:

Owner's Capital

The total value of all assets contributed by the owner to a business minus any withdrawals, representing the owner's equity in the company.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against the cost of a fixed asset, reducing its book value over time.

Permanent Account

An account that carries its ending balance over to the next accounting period, typically representing real accounts like assets, liabilities, and equity.

Closing Process

The steps taken at the end of an accounting period to prepare accounts for the next period, including zeroing out temporary accounts.