Automobile Audio Has the Following Inventory Data: a Physical

question 180

Multiple Choice

Automobile Audio has the following inventory data: A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Ending inventory under FIFO is

• A) $438
• B) $846
• C) $421
• D) $863

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Definitions:

Semiannual

Occurring twice a year; a term often used in the context of payments, reporting periods, or interest calculations.

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, unrelated to market value.

Effective Interest Amortization

A method of allocating loan interest payments over the life of the loan, taking into account the varying principal amounts.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically expressed as an annual rate.