A Principle Is a Prima Facie Principle If

question 44

Multiple Choice

A principle is a prima facie principle if

• A) it allows no exceptions.
• B) it is generally accepted, but still somewhat controversial.
• C) it applies in all cases, unless it conflicts with another principle.
• D) it is general enough to apply to most, but not all, cases.

---

Definitions:

Last-in, First-out Method

An inventory valuation method where the goods purchased last are considered sold first for cost of goods sold calculation.

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through computer systems, without the need for a physical count.

Perpetual Inventory System

An accounting technique that instantly records the sale or purchase of inventory using computerized point-of-sale systems and enterprise asset management software.

FIFO

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be sold.