Other Bases of Accounting (Special Purpose Frameworks)include All of the Following

question 39

Multiple Choice

Other bases of accounting (special purpose frameworks) include all of the following except:

• A)tax basis.
• B)non-GAAP methods used for internal reporting.
• C)cash basis.
• D)regulatory basis.

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Definitions:

Perpetual Inventory System

The perpetual inventory system is a method of accounting for inventory that records sales and purchases instantly through computer systems, maintaining continuous balance updates.

LIFO

LIFO (Last In, First Out) is an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Cost of Goods Sold

Expenses directly related to manufacturing the products a company sells, involving costs of materials and labor.

Perpetual Inventory System

An inventory management system that keeps continuous, real-time records of goods as they are received and sold.