If an Investor Sells Some of the Securities in a Block

question 1

True/False

If an investor sells some of the securities in a block but can't identify which ones were sold, she is presumed to have sold the securities with the latest acquisition date.

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Definitions:

Inventory Cost Formula

A method utilized for valuing the cost of goods sold and ending inventory, often using techniques such as First-In, First-Out (FIFO) or Last-In, First-Out (LIFO).

Cumulative Cost

The total cost accumulated for a project or an activity over a period of time.

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or produced first are sold first.

Physical Movement

The actual transfer or change in location of goods, which can be relevant in the management of inventory and supply chains.