Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

Which of the following is NOT a common cost flow assumption used in costing inventory under either the perpetual or periodic inventory systems?

Specific Identification

Weighted Average Depreciation

Last-In, First-Out (LIFO)

First-In, First-Out (FIFO)

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Verified step by step guidance

Understand the concept of cost flow assumptions: Cost flow assumptions are methods used to allocate costs to inventory and cost of goods sold. They are essential in inventory accounting under both perpetual and periodic inventory systems.

Review the common cost flow assumptions: The most widely used cost flow assumptions include Specific Identification, Weighted Average, Last-In, First-Out (LIFO), and First-In, First-Out (FIFO). Each method has its own way of determining the cost of inventory sold and remaining.

Analyze the options provided: Specific Identification, Weighted Average, LIFO, and FIFO are all valid cost flow assumptions. However, Weighted Average Depreciation is not a recognized cost flow assumption. Depreciation pertains to the allocation of the cost of fixed assets over their useful lives, not inventory costing.

Clarify the distinction: Weighted Average is a valid inventory costing method, but Weighted Average Depreciation is unrelated to inventory costing. This distinction is key to identifying the correct answer.

Conclude the reasoning: Based on the analysis, Weighted Average Depreciation is NOT a common cost flow assumption used in costing inventory under either the perpetual or periodic inventory systems.