Under the FIFO Method Sales Returns Are Costed Back into Inventory

question 22

Multiple Choice

Under the FIFO method sales returns are costed back into inventory at:

• A) an average cost price.
• B) the most recent cost price attached to a sale.
• C) a price determined by the accountant.
• D) the original cost price that was attached to the original sale.

---

Definitions:

Exempt Property

Property that a debtor is allowed to retain, free from the claims of creditors seeking to repossess or sell the property for debt recovery.

Chapter 7 Bankruptcy

A liquidation form of bankruptcy available to individuals and businesses, resulting in the sale of non-exempt assets to pay creditors and discharge most debts.

Equity

The fair and impartial treatment in justice or the value of ownership interest in a property after debts are subtracted.

Means Test

A method for determining eligibility for certain types of financial assistance based on the individual's income and assets.