Profit Is the Difference Between

question 76

Multiple Choice

Profit is the difference between

• A) assets and liabilities
• B) the incoming cash and outgoing cash
• C) the assets purchased with cash invested by stockholders and the cash spent to operate the business
• D) the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services

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Definitions:

FIFO

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be used or sold.

LIFO

Last In, First Out, an inventory valuation method where the last items placed in inventory are the first to be used or sold.

Inventory Control

The supervision of the supply, storage, and accessibility of items in order to ensure an adequate supply without excessive oversupply.

Petty Cash Voucher

A document used to record and authorize the use of cash from a petty cash fund for small, immediate expenses.