Which Inventory Valuation Method Assigns a Value to the Inventory

question 36

Multiple Choice

Which inventory valuation method assigns a value to the inventory on the balance sheet that approximates current cost and also mimics the actual flow of goods for most businesses?

• A)FIFO
• B)Weighted average
• C)LIFO
• D)Specific identification
• E)First in still here

Understand the concept of earnings per share (EPS) and its importance in financial reporting.

Recognize the different components that are included in the calculation of EPS.

Know the distinction between basic EPS and diluted EPS.

Understand the impact of corporate actions like bonus shares and share splits on the calculation of EPS.