Proponents of Using National Standardized Charts of Accounts Argue That

question 9

Multiple Choice

Proponents of using national standardized charts of accounts argue that:

• A) It facilitates the mobility of qualified accountants since all firms use the same basic structure.
• B) It facilitates inter-company comparability of published accounts.
• C) It reduces the cost of designing accounting software packages.
• D) All of these.

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Definitions:

Consignee

The party or entity that receives goods for sale, storage, or transfer but does not take ownership of those goods until they are sold.

LIFO Inventory Method

"Last-In, First-Out" is an accounting method for valuing inventory where the most recently produced items are recorded as sold first.

Physical Inventory

The process of counting all physical merchandise or stock in a business at a specific time to verify the quantities on hand.

Consignment

A process where goods are sent by their owner to an agent for the purpose of sale, storage, or shipment.