Companies with Periodic Inventory Systems Often Use Techniques Such as the Gross

question 4

Multiple Choice

Companies with periodic inventory systems often use techniques such as the gross profit method and the retail method to:

• A)Prepare interim financial statements without taking a complete physical inventory.
• B)Increase gross profit.
• C)Value inventory at its sales price instead of its cost.
• D)Reduce taxable income during a period of rising prices.

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Definitions:

Delaying Gratification

The ability to postpone immediate pleasure or satisfaction in order to achieve a longer-term goal.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society feel uncomfortable with ambiguity and uncertainty.

Ambiguity

The quality of being open to more than one interpretation; lack of definiteness or clarity.

Assertiveness

A communication style characterized by confidently expressing one’s thoughts, feelings, and needs directly and respectfully.