Under Which Basis of Accounting for a Government Should Revenues

question 50

Multiple Choice

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?            
A-         
B-              
C-            
D-         

• A) Choice A.
• B) Choice B.
• C) Choice C.
• D) Choice D.

---

Definitions:

Average Cost Method

An inventory costing method where the cost of goods sold and ending inventory is determined by averaging the cost of all similar items available.

FIFO

An inventory valuation method that assumes the first items placed into inventory are the first sold, standing for "First In, First Out."

LIFO

Last In, First Out, an inventory valuation method where the goods purchased last are the first to be sold.

Safeguarding Inventory

Measures and controls put in place to protect a company's inventory from loss, theft, or damage.