In Calculating Gross Profits, a Firm Utilizing FIFO Inventory Accounting

question 61

Multiple Choice

In calculating gross profits, a firm utilizing FIFO inventory accounting would assume that

• A) all sales were from the current production.
• B) all sales were from the beginning inventory.
• C) sales were from the beginning inventory until it was depleted, and then sales were from the current production.
• D) all sales were for cash.

---

Definitions:

Data-Gathering

The process of collecting facts, figures, and other relevant information to support analysis, decision making, or research.

Primary

A term indicating the most fundamental, dominating, or initial condition, factor, or source in a given context.

Secondary Data

Information that was collected by someone else for a different purpose but is being used as a source of data for a new research project.

Research Samples

Research samples consist of a segment of the population selected for a particular study, used to draw conclusions or generate findings about the larger group from which they were taken.