The Inventory Costing Method That Reports the Most Current Prices

question 92

Multiple Choice

The inventory costing method that reports the most current prices in ending inventory is

• A) FIFO
• B) specific identification
• C) LIFO
• D) average cost

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Definitions:

Supplies On Account

The purchase of supplies on credit, where payment is deferred to a later date.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on the account type.

Service Revenue

Income earned by a company through the provision of services to customers, as opposed to selling goods.

Rent Expense

The cost incurred by a business or individual for leasing a property or space.