Leap-Year Corrections in the Calendar Are Necessary to Account for The

question 167

Multiple Choice

Leap-year corrections in the calendar are necessary to account for the:

• A) fact that the actual rotation time of Earth with respect to the stars is not exactly 24 hours.
• B) wobble of Earth's axis.
• C) slow drift in the direction of Earth's spin axis.
• D) fact that one year is not exactly 365 days.

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Definitions:

Inventory On September 30

The stock of goods a company has available for sale or used in production as recorded on September 30th.

Inventory Cost Flow Assumptions

Accounting methods assumed about how costs flow through inventory; basic types include FIFO, LIFO, and weighted average.

Financial Statements

Documented records that outline the financial activities and conditions of a business, including the balance sheet, income statement, and cash flow statement.

Perpetual Inventory System

A perpetual inventory system is an accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.