A Convertible Security Is Almost Always

question 95

Multiple Choice

A convertible security is almost always

• A)a security that can be converted into any other type of security.
• B)a debt security that can only be converted into preferred stock.
• C)a security that can be converted into common stock at the holder's option.
• D)a security that can be converted into common stock only at the option of the issuing corporation.

---

Definitions:

FIFO Method

A technique for inventory valuation and cost determination where goods first introduced into inventory are the first to be sold.

Process Costing System

An accounting method used for homogeneous products, where costs are assigned to processes or departments and averaged over the units produced.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all goods available for sale.

Finished Goods

Items that have been fully produced but are still awaiting sale or distribution to buyers.