The Statement That Is Correct Is

question 17

Multiple Choice

The statement that is correct is:

• A)LIFO assumes the last goods purchased are the first goods sold
• B)LIFO assumes the first goods purchased are the first goods sold
• C)LIFO assumes that cost of sales consists of the oldest purchases
• D)LIFO assumes that stock at end consists of the most recent purchases

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Definitions:

Discount

A reduction applied to the regular price of goods or services, often to encourage sales.

Par Value

A nominal value or face value assigned to a share of stock by the corporation at the time of issue.

Articles Of Incorporation

These are legal documents filed with a governmental body to legally document the creation of a corporation.

Liquidated

Refers to the process of converting assets into cash or completing a transaction, such as settling debts.