You Had $800 in Your Checking Account When Your EFTS

question 21

Multiple Choice

You had $800 in your checking account when your EFTS card and PIN were stolen. You didn't report the theft for two months after your periodic statement was mailed. How much could you lose?

• A)$0
• B)$50
• C)$400
• D)$800
• E)$800 plus a fee

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Definitions:

F.O.B. Destination

Seller pays or is responsible for the cost of freight to purchaser’s location or destination.

FIFO Method

First-In, First-Out method, an inventory valuation method where the first items purchased are the first ones sold, used in calculating cost of goods sold.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Periodic Inventory System

A method of inventory valuation in which physical inventory is counted at specific intervals and cost of goods sold is calculated periodically.