Which of the Following Statements Is True

question 81

Multiple Choice

Which of the following statements is true?

• A) A company must use the FIFO cost flow assumption for taxes as well as for financial accounting and reporting.
• B) A company may use FIFO for inventory valuation purposes on the balance sheet provided that LIFO cost of goods sold is reported on the income statement.
• C) Application of LIFO for financial reporting purposes must strictly follow IRS regulations relating to LIFO.
• D) LIFO is the only inventory method that must be used for financial reporting purposes if used for tax purposes.

Understand the economic implications of labor market discrimination.

Recognize the factors that can lead to wage differentials in a competitive labor market.

Identify scenarios where discrimination might persist despite competitive market pressures.

Understand how consumer preferences can influence market outcomes related to discrimination.

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Definitions:

Property Rights

Legal rights to use, control, and benefit from owning property, both tangible and intangible.

Economic Signals

Indicators or pieces of data that inform individuals or markets about the health of the economy or trends in economic activity, potentially guiding decision-making.

Efficiency

The extent to which time, effort, or cost is well used for the intended task or purpose.

Equity

Fairness or justice in the way people are treated, or in financial terms, the value of an ownership interest in property, including shareholders' equity in a business.