Which of the Following Inventory Cost Flow Assumptions Produces the Same

question 71

Multiple Choice

Which of the following inventory cost flow assumptions produces the same ending inventory values under both the periodic and perpetual systems?

• A)FIFO
• B)LIFO
• C)average
• D)dollar-value LIFO

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Definitions:

Debt Financing

Raising capital through borrowing money that must be repaid over time, with interest, from lenders or financial institutions.

Industry Standard

A prevalent practice, process, or guideline followed within a specific industry to ensure quality, safety, and efficiency.

Debt Financing

Raising funds for a company by selling debt instruments to individuals or institutional investors.

Liquidity

This concept describes how easily an asset or security can be converted into ready cash without affecting its market price.