Which of the Following Statements Is Correct with Respect to Inventories

question 86

Multiple Choice

Which of the following statements is correct with respect to inventories?

• A) The FIFO method 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.

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Definitions:

Medical Record

An organized compilation of a patient’s health history, treatment, and care, maintained by healthcare professionals.

Correct Information

Accurate and verified data or facts.

Written Consent

A formal agreement obtained through a documented and signed form, permitting an action.

Insurance Company

An organization that provides a range of insurance policies to protect individuals and businesses against the risk of financial losses in return for regular payments of premiums.