In a Perpetual Inventory System

question 155

Multiple Choice

In a perpetual inventory system,

• A)LIFO cost of goods sold will be the same as in a periodic inventory system.
• B)average costs are based entirely on unit cost simple averages.
• C)a new average is computed under the average cost method after each sale.
• D)FIFO cost of goods sold will be the same as in a periodic inventory system.

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Definitions:

Yield To Investors

The total return anticipated on an investment, expressed as an annual percentage, accounting for all income and capital gains.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating how much of additional income will be taken in taxes.

Beta

A measure of a stock's volatility or risk as compared to the overall market, indicating how much the stock’s price is expected to move relative to market movements.

Coupon Rate

The annual interest rate paid by a bond issuer to its bondholders, usually expressed as a percentage of the bond's face value.