Two-Year-Old Shana Is Shown a Novel Object

question 85

Multiple Choice

Two-year-old Shana is shown a novel object. The object is 6 inches wide, is made out of blue wire, and is in the shape of an octagon. An adult tells Shana, "This is a glub." Of these objects, which is Shana MOST likely to later believe is a glub?

• A) a 12-inch octagonal object made out of red felt
• B) a 6-inch square object made out of green ceramic
• C) a 2-inch triangular object made out of blue plastic
• D) a 10-inch rectangular object made out of orange wire

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Definitions:

Updated inventory value

The revised total cost or market value of all inventory items a company holds, adjusted for additions, subtractions, and valuation changes over a specific period.

LIFO method

Last In, First Out; an inventory valuation method where the most recently produced or purchased items are the first to be expensed.

Periodic system

An inventory valuation method where updates to inventory records are made on a periodic basis, usually at the end of an accounting period.

Beginning inventory

The value of a company's inventory at the start of an accounting period.