Time Drafts

question 3

Multiple Choice

Time drafts:

• A)have no value given the deferred nature of document.
• B)are generally not preferred in international transaction.
• C)are negotiable instruments.
• D)are also called bills of lading.

---

Definitions:

FIFO Method

A method of inventory valuation where the first items placed in inventory are the first sold, standing for "First In, First Out."

Inventory Amount

refers to the total cost or market value of all the goods and materials a company has in stock at a given time.

LIFO

"Last In, First Out," a method of inventory valuation where the most recently produced or acquired items are the first to be expensed.

Average Inventory

The mean value of a company's inventory over a specified period, often used to calculate turnover rates and efficiency in managing stock levels.