Which Group Best Defines a Partnership

question 40

Multiple Choice

Which group best defines a partnership?

• A)A business owned and operated by one person who hires part time employees.
• B)A voluntary association of two persons to have a business for profit.
• C)The governing body for a company.
• D)A group of three persons in which each person has limited personal liability.

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Definitions:

Physical Inventory Count

A physical inventory count is the manual process of counting all the goods a company physically has on hand at a specific time to verify stock records and values.

First-In, First-Out

An inventory valuation method where the goods first produced or acquired are sold or used first, presuming that the oldest inventory items are consumed before newer ones.

Ending Inventory

The value of goods available for sale at the end of an accounting period, after purchases and sales have been accounted for.

Average Cost Formulas

A method used in accounting to calculate the cost of goods sold and ending inventory by averaging the cost of all items available for sale during the period.