Which Statement Is Correct

question 6

Multiple Choice

Which statement is correct?

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

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Definitions:

Future Interest

A legal right to property or an estate that becomes possessible or enjoyable at a future date.

Third Party

An entity not directly involved in a contract or agreement but who may be affected by its outcomes or can affect its execution.

Remainder

The part of an estate that is left after all other bequests and debts have been satisfied.

Fee Simple

The most comprehensive ownership interest in real property, allowing the owner nearly unlimited control over the land.