After the Physical Inventory Is Completed

question 146

Multiple Choice

After the physical inventory is completed

• A) quantities are listed on inventory summary sheets.
• B) quantities are entered into various general ledger inventory accounts.
• C) the accuracy of the inventory summary sheets is checked by the person listing the quantities on the sheets.
• D) unit costs are determined by dividing the quantities on the summary sheets by the total inventory costs.

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Definitions:

Probabilities

The measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Cost Of Capital

The rate of return that a company must earn on its investments to maintain its market value and attract funds.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project.

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole, where a beta greater than one indicates higher than market volatility and less than one indicates lower.