Match Each Description to the Appropriate Cost Flow Assumption (A-C)

question 64

Multiple Choice

Match each description to the appropriate cost flow assumption (a-c) .
-Assigns the same value to all inventory units

• A)FIFO
• B)LIFO
• C)Weighted average

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Definitions:

Post Reference Notation

An alphanumeric or numeric code used in accounting to indicate a journal entry has been posted to a particular ledger account.

Journal

A chronological record of all financial transactions, used to transfer information to the general ledger in the accounting process.

Journal Entries

Records of financial transactions in the accounting system, ensuring that the debit and credit balance.

Debit

A financial record that leads to a rise in assets or a reduction in liabilities on the balance sheet of a company.