Reading 32: Understanding the Income Statement - LOS d ～ Q1 statements, following, regarding, least, style

cfaedu

1.Which of the following statements regarding first in, first out (FIFO) is least accurate?

A)   Ending inventory consists of the cost of the most recent purchases.

B)   Items sold are a mix of the cost of the purchases.

C)   The cost of the items first purchased represent the first to be sold.

D)   Cost of goods sold consists of the costs of the first purchases.

cfaedu

答案和详解如下：

1.Which of the following statements regarding first in, first out (FIFO) is least accurate?

A)   Ending inventory consists of the cost of the most recent purchases.

B)   Items sold are a mix of the cost of the purchases.

C)   The cost of the items first purchased represent the first to be sold.

D)   Cost of goods sold consists of the costs of the first purchases.

The correct answer was B)

With FIFO the cost of the items sold are the first purchased, with LIFO the cost of the items last purchased represent the first to be sold, and with the weighted average cost method the cost of the items sold are a mix of purchases.

zxhtony

thanks

hjl2000

d