The Bottom Quintile of Income Earners Would Be Those Whose

question 18

Multiple Choice

The bottom quintile of income earners would be those whose income is

• A) in the lowest 5 percent.
• B) in the lowest 20 percent.
• C) in the highest 20 percent.
• D) lower than the highest 20 percent of households.

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Definitions:

Merchandise Inventory

The value of the products that a company has in stock and intends to sell.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for paying shipping costs and for the goods at the point of departure from the seller's shipping dock.

Inventory Turnover

An indicator of the number of times a business's inventory turns over and is replenished during a certain period, demonstrating how efficiently inventory is managed.

Specific Identification Method

An inventory valuation method that tracks the actual cost of each specific item of inventory to determine cost of goods sold and ending inventory.