Because of a Family Emergency, John Was Unable to Complete

question 12

Multiple Choice

Because of a family emergency, John was unable to complete a report for his boss. Instead, he asks a coworker to finish it for him and in the morning, John tells his boss that he did the report. Is there anything wrong with John's action?

• A) No, because John's coworker only finished what John had started.
• B) No, because John had a family emergency and his boss don't need the details. The report is done.
• C) Yes, because John told a lie to his boss and put his reputation on the line.
• D) Yes, because John is indebted to his coworker now.

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Definitions:

Merchandise

Goods or products that are bought and sold in any business activity.

LIFO

Last In, First Out, an inventory valuation method where the last items added to inventory are assumed to be the first sold.

Inventory Costing Methods

Techniques used to calculate the cost of inventory, including First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and Average Cost methods.

Subsidiary Inventory Ledger

The subsidiary ledger containing individual accounts for items of inventory.