Which of the Following Categories Is Not Considered to Be

question 79

Multiple Choice

Which of the following categories is not considered to be one of the four basic economic units in the U.S.financial system?

• A)business firms
• B)financial intermediaries
• C)governments
• D)not-for-profit organizations
• E)all are considered among the four basic economic units of the financial system

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Definitions:

Perpetual inventory method

An accounting method where inventory levels are updated in real-time with each sale and purchase, providing a continuous record of inventory balances.

Inventory method

An accounting approach used to value and manage the inventory of a business, including FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and average cost methods.

Updated inventory value

The revised total cost or market value of all inventory items a company holds, adjusted for additions, subtractions, and valuation changes over a specific period.

LIFO method

Last In, First Out; an inventory valuation method where the most recently produced or purchased items are the first to be expensed.