Which of the Following Is Never a Current Liability Account

question 14

Multiple Choice

Which of the following is never a current liability account?

• A)Accrued payroll.
• B)Dividends payable.
• C)Prepaid rent.
• D)Subscriptions collected in advance from customers.

Understand the implications of FOB shipping terms on inventory accounting.

Compare the effects of FIFO and LIFO in a period of increasing costs.

Understand and calculate various inventory accounting methods (FIFO, LIFO, and Average cost).

Analyze the impact of inventory management on financial statements and performance metrics.

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Definitions:

U-Shaped AVC

The U-Shaped Average Variable Cost curve represents how the per-unit production expenses initially decrease due to increasing returns and subsequently increase after reaching a certain scale due to diminishing returns.

Perfectly Competitive

A perfectly competitive market is one with many buyers and sellers, where no single entity can influence the market price, and all products are identical.

Profit-Maximizing

A strategy or approach focused on increasing a firm’s profits to the highest possible level given its production costs and market demand.

Downward-Sloping

A characteristic of demand curves where price and quantity demanded move in opposite directions.