The Average Cost Inventory Method Is the Rarely Used with a Perpetual

question 107

True/False

The average cost inventory method is the rarely used with a perpetual inventory system.

---

Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which often bears no relation to its market value.

Fair Value

An estimate of the price at which an asset or liability could be bought or sold in an orderly transaction between market participants at the measurement date.

Par Value

The face value of a bond or the stock value stated in the corporate charter, not necessarily related to its market value.

Fair Value

The estimated price at which an asset or liability could be traded in a fair transaction between willing parties.