Which of the Following Statements Is Correct

question 3

Multiple Choice

Which of the following statements is correct:

• A) The periodic method of accounting for inventories will always result in a higher closing inventories balance than the perpetual method.
• B) The periodic method of accounting for inventories will always result in a lower closing inventories balance than the perpetual method.
• C) Closing inventories will always be the same under the periodic and perpetual methods.
• D) The relationship between the closing inventories balance under the periodic and perpetual methods will depend on whether the FIFO or weighted average method is used to value inventories.

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Definitions:

Fundraising Expenses

Costs incurred in the process of raising funds, typically for non-profit organizations or business ventures.

Groceries

Consumable food products and household items regularly purchased by individuals or families for daily or near-daily consumption.

Flexible Budget

A flexible budget adjusts costs and revenue levels according to varying activity levels, providing a more accurate performance assessment than a static budget.

Homeless

Individuals or families lacking a fixed, regular, and adequate nighttime residence.