Under GAAP, Only ________ Can Be Assigned to Inventories in the Financial

question 26

Multiple Choice

Under GAAP, only ________ can be assigned to inventories in the financial statements.

• A) manufacturing costs
• B) period costs
• C) cost of goods sold
• D) historical costs

---

Definitions:

Trade Deficit

Occurs when a country's imports exceed its exports during a given time period, leading to an outflow of domestic currency to foreign markets.

Underwood Tariff

An early 20th-century legislative act that substantially reduced tariffs in the United States, aimed at lowering consumer costs and promoting free trade.

Republican Administrations

Refers to periods of governance in the United States when the executive branch is controlled by the Republican Party, typically characterized by certain fiscal, social, and foreign policies.

Trade Deficits

The economic condition that occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade.