Adam Inc Uses a Perpetual Inventory System

question 156

Multiple Choice

Adam Inc. uses a perpetual inventory system. If Adam uses the FIFO method, how much is ending inventory on January 31?

• A) $8
• B) $12
• C) $16
• D) $40

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Definitions:

Bank Deposit Form

A document used to deposit funds into a bank account, specifying details like the account number and deposit amount.

Customer Sales

The revenue earned from selling goods or services to customers.

Checking Accounts

Bank accounts from which money can be withdrawn or transferred to others via checks, debit cards, or electronic methods.

Owner's Personal Expenses

Owner's personal expenses are costs that are not related to the business and are paid out of the owner's personal funds, not the business accounts.