When a Company Uses LIFO for External Reporting Purposes and FIFO

question 146

Multiple Choice

When a company uses LIFO for external reporting purposes and FIFO for internal reporting purposes, an Allowance to Reduce Inventory to LIFO account is used. This account should be reported

• A) on the income statement in the Other Revenues and Gains section.
• B) on the income statement in the Cost of Goods Sold section.
• C) on the income statement in the Other Expenses and Losses section.
• D) on the balance sheet in the Current Assets section.

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Definitions:

Problem-Oriented Recording

Problem-Oriented Recording is a method of documentation used in healthcare and social work that focuses on identifying and solving specific problems presented by clients or patients.

Retained

Kept or continued to have possession or use of something, often used in the context of keeping information, positions, or objects.

Confidentiality

The ethical principle or legal right that a professional or organization should not disclose information about a client or patient to others without the consent of the individual.