Which Component of U

question 148

Multiple Choice

Which component of U.S.household spending has grown the most over the past ten years?

• A)Taxes
• B)Savings
• C)Spending on services
• D)Spending on nondurable goods
• E)Spending on durable goods

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Definitions:

Periodic Inventory System

A method of inventory valuation in which physical inventory is counted at specific intervals and cost of goods sold is calculated periodically.

Specific Invoice Method

An accounting approach to valuing inventory that tracks the cost of each specific item in inventory and is sold.

Ending Inventory

Ending inventory is the value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Periodic Inventory System

A method used in accounting to update inventory and cost of goods sold periodically at the end of each accounting period rather than after each sale.