Which of the Following Statements Is True

question 79

Multiple Choice

Which of the following statements is true?

• A)The flow of inventory costs should match the physical flow of the merchandise.
• B)Accounting standards require that merchandise costs be specifically traced to units left in inventory and to units that have been sold.
• C)Accountants have developed methods which make assumptions concerning how costs should be assigned to inventory and cost of goods sold.
• D)Alternative inventory cost-flow assumptions have the same effect on the amount of net income reported.

---

Definitions:

Secondary Market

A marketplace where previously issued securities and financial instruments such as stocks, bonds, options, and futures are bought and sold.

Interest Rates

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage.

Bond Prices

The amount of money for which a bond is sold, which can fluctuate based on interest rates, credit quality, and other factors.

Face Value

The nominal value printed on a coin, banknote, security, or bond, not necessarily its current market value.