An Increase in the LIFO Reserve Is Recorded as ________

question 126

Multiple Choice

An increase in the LIFO reserve is recorded as ________.

• A) a credit to Cost of Goods Sold
• B) a debit to Cost of Goods Sold
• C) debit to the LIFO Reserve
• D) credit to the Inventory account

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Definitions:

Aid to Families

Programs providing financial or other assistance to families, often targeting housing, healthcare, or income support.

Dependent Children

Individuals, typically under the age of 18, who rely on adults for financial support and care.

Excise Tax

Taxes applied to specific goods, services, or activities, either as a flat amount per unit or as a percentage of the price.

Direct and Indirect

Terms used to differentiate between costs, taxes, or subsidies that are explicitly linked to the production or sale of a good (direct) and those that are not directly linked but influence economic outcomes (indirect).