An Assumption About Cost Flow Is Necessary

question 139

Multiple Choice

An assumption about cost flow is necessary

• A) because it is required by the income tax regulation.
• B) even when there is no change in the purchase price on inventory.
• C) only when the flow of goods cannot be determined.
• D) because prices usually change, and tracking which units have been sold is difficult.

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Definitions:

Enforcement

The act of compelling compliance with a law, regulation, agreement, or ruling, often by a governing body or authoritative entity.

Work-Related Contracts

Agreements that are specifically tied to employment or professional services between two or more parties.

Intoxication

A state of being under the influence of alcohol or drugs to a degree that mental and physical faculties are significantly impaired.

Voidable

A term describing a legal agreement that may be declared invalid by one of the parties due to certain conditions not being met or due to the presence of coercion, misrepresentation, or fraud.