Specific Identification Is an Inventory Costing Method Used to Value

question 54

True/False

Specific identification is an inventory costing method used to value inventory where the merchandise identified as sold or on hand is typically a high-priced or one-of-a-kind item.

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Definitions:

Contra Account

An account used in accounting to record reductions of related accounts, which has a balance opposite to the normal balance of the related account.

Unearned Rental Revenue

Income received from renters but not yet earned because the rental period has not occurred.

Bad Debts Expense

The cost recorded by businesses to cover accounts receivable that are not expected to be collected.

Rental Income

Rental income is income received from leasing out property or equipment, forming a source of earnings for businesses and individuals alike.