Assume That the Client's Valuation of an Inventory Item Is

question 80

Multiple Choice

Assume that the client's valuation of an inventory item is $10 per unit for 1,000 units, using first-in, first-out (FIFO) . If the most recent acquisition of inventory was for 600 units at $10 per unit and the immediately preceding acquisition was for 700 units at $9 per unit, the inventory item is in error and it is

• A) understated $400.
• B) understated $300.
• C) overstated $400.
• D) overstated $700.

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Definitions:

Lower Deficit

A reduction in the amount by which a government's spending exceeds its revenue.

Raise Taxes

The act of increasing the amount of money the government requires citizens or businesses to pay on their income, property, or purchases.

Social Security Trust

is a fund that holds the financial assets of the Social Security Administration in the United States, used to pay out benefits to retirees, disabled individuals, and survivors.

Federal Budget Deficit

The financial situation where the federal government's expenditures exceed its revenues within a particular fiscal year.