In the Flow of Costs, Which of the Following Comes

question 9

Multiple Choice

In the flow of costs, which of the following comes last?

• A)Finished goods inventory
• B)Cost of goods sold
• C)Raw materials inventory
• D)Work in process inventory

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Definitions:

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives as an expense to reflect their usage and wear and tear.

Stock Dividend

Additional shares are issued to shareholders by a corporation as a payment, rather than giving out cash.

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporation's charter, not necessarily reflecting their market value.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; also known as shareholders' equity.