The Major Issue in Inventory Accounting Is

question 73

Multiple Choice

The major issue in inventory accounting is

• A)determining whether to take inventory using cycle counts as opposed to counting all inventory only at the end of the year.
• B)deciding whether to maintain records on a periodic or perpetual basis.
• C)determining what goods to include in inventory.
• D)choosing the method for allocating goods available for sale to ending inventory and cost of goods solD.

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand forces.

Common Stock

Equity ownership in a corporation, providing voting rights and a share in the company's profits through dividends.

Stock Split

A corporate action that increases the number of a company’s outstanding shares by dividing each share, which in turn reduces the price per share.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the legal capital per share.