When Prices Are Falling, Valuing Inventory Using the LIFO Method

question 24

Multiple Choice

When prices are falling, valuing inventory using the LIFO method rather than FIFO gives:

• A) inventory a higher value but lowers net income.
• B) inventory a lower value and also lowers net income.
• C) both inventory and net income a higher value.
• D) inventory a lower value and net income a higher value.

Identify and differentiate between types of reinforcers (positive, negative, primary, secondary).

Recognize the application of operant conditioning principles in real-life scenarios.

Distinguish between operant and classical conditioning.

Understand the concept of shaping and successive approximations in behavior modification.

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Definitions:

Face Value

The nominal or dollar value printed on a security or bond, representing the amount the issuer promises to pay at maturity.

Zero-Coupon Bonds

Bonds that are sold at a discount and pay no regular interest payments but are redeemed at their face value at maturity.

Yield To Maturity

The total return expected on a bond if held until its maturity date, accounting for its current price, interest payments, and face value.

Maturity

The date on which a financial instrument (e.g., bond, loan) reaches its final installment, and the principal is due to be paid to investors.