Harvest Moon Produce Has Two Hundred Acres of Apple and Peach

question 45

Multiple Choice

Harvest Moon Produce has two hundred acres of apple and peach trees.Each year the company must adjust their inventory to fair value less costs to sell.The resulting gain or loss from this adjustment should be charged to:

• A)retained earnings.
• B)other comprehensive income.
• C)deferred costs.
• D)net income.

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Definitions:

Health Care Spending Accounts

Accounts that allow employees to set aside pre-tax dollars to pay for eligible health care expenses not covered by their insurance.

Fixed Benefits Plan

A type of employee benefits plan where the benefits provided are predetermined and not based on individual performance or company profitability.

Defined Benefit Plan

A pension plan that guarantees a specified monthly benefit at retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.

Annual Pension

A financial arrangement that provides individuals with a regular payment during retirement, typically based on years of service and salary history.