In a Period of Rising Prices, the Inventory Method Which

question 16

Multiple Choice

In a period of rising prices, the inventory method which tends to give the highest reported inventory is

• A) FIFO.
• B) moving average.
• C) specific identification.
• D) weighted-average.

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Definitions:

Truth in Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Discretion

The quality of behaving or speaking in such a way as to avoid causing offense or revealing confidential information.

Certified Check

A payer’s check written and signed by the payer, which is stamped “certified” by the bank. The bank has already drawn money from the payer’s account to guarantee that the check will be paid.

Managed Care Organizations

Health organizations that provide medical care directly to the insured person with the aim to improve healthcare services while controlling costs.