O on a daily basis O on a monthly basis. O on an annual basis O with each sale. QUESTION Which of the following statements is correct with respect to inventories? O The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold O It is generally good business management to sell the most recently acquired goods first O "Under FIFO, the ending inventory is based on the latest units purchased" O FIFO seldom coincides with the actual physical flow of inventory QUESTION 3 In which journal would a cash purchase of inventory be recorded? Purchases journal General journal Cash payments journal O None of these answer choices are correct