The Private Securities Litigation Reform Act of 1995 Replaced Proportionate

question 27

True/False

The Private Securities Litigation Reform Act of 1995 replaced proportionate liability of the defendant with joint and several liability.

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Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by using a cost-to-retail price ratio based on both beginning inventory and purchases during the period.

Ending Inventory

The total value of all inventory a company has available for sale at the end of an accounting period.

Average Cost

A method of inventory costing that determines the cost of goods sold and ending inventory based on the weighted average cost of all purchases.

Gross Profit Method

A technique used to estimate the amount of ending inventory using the gross profit margin.