Which of the Following Is a Business Event That Is

question 63

Multiple Choice

Which of the following is a business event that is considered a recordable transaction?

• A)A company hires a new employee.
• B)A customer purchases merchandise.
• C)A company orders a product from a supplier.
• D)An employee sends a purchase requisition to the purchasing department.

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Definitions:

Inventory Costing

The method of calculating the cost of goods sold and ending inventory value, which can include approaches like FIFO, LIFO, and weighted average.

Periodic FIFO

A method of inventory valuation where goods purchased first are assumed to be sold first, calculated periodically at the end of an accounting period.

Cost of Goods Sold

Costs directly related to the creation of products a company sells, which encompass both the cost of materials and labor.

Ending Inventory

The total value of all inventory, including raw materials, work-in-progress, and finished goods, remaining at the end of an accounting period.