Deferred Inflow of Resources Is

question 57

Multiple Choice

Deferred inflow of resources is

• A) Money that will be collected 5 years from now
• B) Money that is in a fiduciary fund until donor restrictions lapse
• C) Money collected in the current period that are applicable to the future periods
• D) Present obligations that the government has little or no discretion to avoid.

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Definitions:

Earliest Units

The first units produced or acquired in a period, which are often accounted for differently in inventory costing methods.

Cost Of Goods Sold

The total cost directly associated with producing goods sold by a business, including materials and labor.

Perpetual Inventory System

An inventory system under which the company keeps detailed records of the cost of each inventory purchase and sale, and the records continuously show the inventory that should be on hand.

FIFO Method

An inventory valuation method that assumes the first items placed into inventory are the first sold, thus expenses are based on the oldest costs.