Use This Inventory Information for the Month of November to Answer

question 163

Multiple Choice

Use this inventory information for the month of November to answer the following question. Assuming that a periodic inventory system is used,what is cost of goods sold on a LIFO basis?

• A) $15,392
• B) $15,472
• C) $7,328
• D) $7,408

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Definitions:

Net Income

Net income is the total profit of a company after subtracting all expenses, taxes, and costs from its total revenue.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, with voting rights at shareholder meetings.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, as a portion of the company's profits.

Earnings Per Share

A financial ratio that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.