In Periods of Inflation, Phantom or Paper Profits May Be

question 16

Multiple Choice

In periods of inflation, phantom or paper profits may be reported as a result of using the

• A) perpetual inventory system.
• B) FIFO costing method.
• C) LIFO costing method.
• D) periodic inventory system.

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Definitions:

Double Approach/Avoidance Conflict

A psychological conflict that arises when a person is faced with a decision involving both desirable and undesirable aspects of two conflicting goals.

Locus Of Control

A mental construct denoting how much people think they possess the power to influence occurrences that impact their existence.

Optimist

An individual who tends to be hopeful and confident about the future or the success of something.

Pessimist

A person who tends to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.