What Method Is Automatically Used to Allocate Income or Losses

question 71

Multiple Choice

What method is automatically used to allocate income or losses (unless an election is made) ?

• A) Short-year method.
• B) Long-year method.
• C) Per-day allocation.
• D) FIFO method.
• E) LIFO method.

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Definitions:

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A theory suggesting that poverty creates a distinct set of values, behaviors, and attitudes that perpetuate conditions of economic disadvantage.

Accounts Receivable Subsidiary Ledger

A book or file that contains the individual records, in alphabetical order, of amounts owed by various credit customers.

Accounts Payable Journal

A ledger that records all short-term obligations or debts a company owes to suppliers and creditors.

Sales Journal

A specialized journal used to record all of a company's sales on credit.