The Inventory System Whereby the Merchandise Inventory Account Balance Is

question 112

Multiple Choice

The inventory system whereby the merchandise inventory account balance is merely a record of the most recent physical inventory count is called the:

• A)periodic system.
• B)perpetual system.
• C)LIFO system.
• D)FIFO system.

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Definitions:

Over Insure

The condition of having insurance coverage that exceeds the value of the insured item or risk, leading to unnecessary higher premium costs.

Deductible

A sum specified in an insurance policy that the insured individual must pay before being compensated for a claim; deductibles reduce moral hazard.

Premium

The amount paid for an insurance policy, or the difference between the higher price paid for a fixed-income security above its face value.

Insurance Companies

Organizations that provide risk management by compensating for financial losses in exchange for premium payments.