Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A)Whether unit costs are steadily rising or falling,the weighted average cost method always yields a cost of goods sold between that of FIFO and LIFO.
• B)FIFO will lead to the highest net income if unit costs are falling.
• C)LIFO will always yield a smaller net income than FIFO.
• D)Specific identification is the most practical,but least accurate,measure of cost and net income.

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Definitions:

Ordinary Annuity

A series of equal payments made at regular intervals, with the typical assumption that each payment occurs at the end of a period.

Deferred Annuity

An insurance product that provides future payments to the holder, typically starting at retirement, after an initial investment period.

Ordinary Annuity

A succession of equivalent remittances occurring at regular intervals for a certain stretch of time.

Deferred Annuity

An insurance product that provides future payments to the holder, usually after retirement, where payments are delayed for a certain period.