Diligent Ltd Had Five Units of the Commodity Algo on Hand

question 4

Multiple Choice

Diligent Ltd had five units of the commodity Algo on hand at 1 September 2019. The following purchases and sales were made during September: What was the value of ending inventory of Algo, using the FIFO assumption?

• A) $1 460
• B) $1 480
• C) $2 400
• D) $1 400

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Definitions:

Cost Of Equity

The return that investors expect for providing capital to a company, often seen as the risk-free rate plus a premium for the equity risk.

Growth Rate

The percentage change in the value of a specific metric (e.g., revenue, population) over a designated period.

Cost Of Capital

The earnings threshold a business needs to meet on investment endeavors to preserve its market worth and secure financing.

Debt-Equity Ratio

A financial comparison indicating the relationship of debt to equity in financing a company’s assets.