Select the Answer That Correctly Combines Each Pair of Sentences

question 14

Multiple Choice

Select the answer that correctly combines each pair of sentences into one by using a possessive, keeping the meaning of the original sentences. Mickey owns a baseball card collection. The collection is very valuable.

• A) The collection's most valuable baseball card is Mickey's.
• B) Mickey's baseball card collection is very valuable.

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Definitions:

LIFO

Last In, First Out, an inventory accounting method where the last items added to inventory are the first ones to be used or sold, affecting cost of goods sold and inventory valuation.

Replacement Cost

The cost to replace an asset with another of similar nature and quality in its current condition.

Current Revenues

Income that a company receives from its normal business activities, typically from the sale of goods and services, within the current accounting period.

LIFO Reserve

The difference in the value of inventory under the Last-In-First-Out (LIFO) method compared to the First-In-First-Out (FIFO) method, reflecting the impact of inflation on inventory costs.