Match Each Description to the Appropriate Cost Flow Assumption (A-D)

question 131

Multiple Choice

Match each description to the appropriate cost flow assumption (a-d) .
-Cost flow is assumed to be in the reverse order of costs incurred.

• A)Weighted average
• B)First-in, first-out (FIFO)
• C)Last-in, first-out (LIFO)
• D)Specific identification

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Definitions:

AGI

Adjusted Gross Income, which is an individual's total gross income minus specific deductions allowed by the IRS.

Series EE Bonds

Savings bonds issued by the U.S. government that pay interest until they reach maturity at 30 years.

Series E Bonds

Government bonds issued at a discount and meant for investors as a savings product, no longer available for purchase.

Maturity Date

The specified date on which the final payment of a loan or financial instrument is due to be paid in full.