Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) Retail stores do not have a production cycle.
• B) Financial institutions have installment-loan cycles.
• C) A service company does not have an inventory system.
• D) Every organization should implement every transaction cycle module.

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Definitions:

LIFO Cost Flow Assumption

An inventory valuation method that assumes the most recently produced or acquired items are sold first, last-in, first-out.

FIFO

First In, First Out, an inventory valuation method where the first items placed in inventory are the first sold.

Specific Identification

An inventory valuation method wherein the costs of individual inventory items are tracked and used to determine the cost of goods sold.

Retail Industry

A sector that consists of businesses selling consumer goods directly to customers, involving a range of stores and online platforms offering merchandise from food to fashion.