An 83-Day Note Issued on November 13, 2014 Will Mature

question 39

Multiple Choice

An 83-day note issued on November 13, 2014 will mature on:

• A)February 2, 2015.
• B)February 3, 2015.
• C)February 4, 2015.
• D)February 5, 2015.

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Definitions:

Periodic Inventory System

An accounting method where inventory and cost of goods sold are determined at the end of a period through a physical count.

FIFO Inventory

A method of inventory valuation where the first items produced or acquired are the first ones sold, FIFO stands for "First In, First Out."

Cost of Goods Sold

The total cost of all raw materials, labor, and overhead expenses incurred to produced goods that were sold during a particular period.

Perpetual Inventory System

An accounting method that continuously updates inventory records for purchases and sales in real-time.