Consider the Following REA Diagram as You Respond to the Question

question 46

Multiple Choice

Consider the following REA diagram as you respond to the question: The box in the first column represents a(n) :

• A)Resource
• B)Event
• C)Internal agent
• D)External agent

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Definitions:

Cost Of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold by a company.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, becoming the next period's beginning inventory.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, such as monthly or annually, rather than continuously.

FIFO

"First In, First Out," an inventory valuation method assuming that the oldest items in inventory are sold or used first.