Jesse Corp

question 41

Multiple Choice

Jesse Corp. owns 4,000,000 shares of James Corp. On December 31, 2020, Jesse distributed these shares as a dividend to its shareholders. This is an example of a

• A) property dividend.
• B) stock dividend.
• C) liquidating dividend.
• D) cash dividend.

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Definitions:

Perpetual Inventory System

A continuous tracking method for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

LIFO

Last In, First Out, an inventory accounting method where the last items placed in inventory are the first ones to be used or sold.

Ending Inventory

Products' value that is available for transaction at the culmination of an economic period.

Merchandise Inventory

Goods held by a business for the purpose of resale to customers in the ordinary course of business.