For Each Item Listed in 1 Through 7, Place the Letter

question 87

Essay

For each item listed in 1 through 7, place the letter (a through e) of the accounting effect in the space provided. You may use each letter more than once or not at all.
$\quad$$\quad$$\quad$ Accounting Effects
a. Assets and net income increase
b. Assets and net income decrease
c. Assets decrease and net income increases
d. Assets increase and net income decreases
e. Assets and net income are not affected
____ 1. During a period of increasing inventory and rising prices, a company decides to use FIFO instead of LIFO.
____ 2. During a period of increasing inventory and rising prices, a company decides to use Average instead of FIFO.
____ 3. During a period of increasing inventory and increasing prices, a company uses the LIFO method, which creates the largest cost of goods sold.
____ 4. A company applies lower-of-cost-or-market for valuing ending inventory when market price is less than cost.
____ 5. A company applies lower-of-cost-or-market for valuing ending inventory when cost is less than market price.
____ 6. During an extended period of constant prices, a company adopts LIFO instead of FIFO.

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Definitions:

Ventilation-Perfusion Coupling

The coordination between the flow of air into the lungs (ventilation) and the blood flow in the pulmonary capillaries (perfusion), crucial for efficient gas exchange.

Hering-Breuer Reflex

A physiological reflex that helps regulate the depth of breathing and prevents the overinflation of the lungs by signaling the respiratory center to inhibit inhalation.

Breathing

The physiological process of inhaling oxygen from the air into the lungs and exhaling carbon dioxide out, essential for life.

Ventilation-Perfusion Coupling

The coordination between the air flow in the lungs (ventilation) and the blood flow in the circulatory system (perfusion), essential for efficient gas exchange.