If Companies Have Identical Inventoriable Costs but Use Different Inventory

question 95

Multiple Choice

If companies have identical inventoriable costs but use different inventory flow assumptions when the price of goods have not been constant, then the

• A)cost of goods sold of the companies will be identical.
• B)cost of goods purchased during the year will be identical.
• C)ending inventory of the companies will be identical.
• D)net income of the companies will be identical.

---

Definitions:

Payable

Refers to an amount of money that must be paid, typically in the context of bills or debts.

Insurance Agent

a professional who sells, solicits, or negotiates insurance policies on behalf of an insurance company to clients.

Bearer Instruments

Financial documents that entitle the holder or bearer to a sum of money or value stated on the document, without requiring ownership registration.

Indorsement

An act of signing a document, often found on the back of a check, to transfer rights or to authenticate.