The LIFO Reserve Is

question 141

Multiple Choice

The LIFO reserve is

• A)the difference between the value of the inventory under LIFO and the value under FIFO.
• B)an amount used to adjust inventory to the lower of cost or market.
• C)the difference between the value of the inventory under LIFO and the value under average cost.
• D)the amount used to adjust inventory to historical cost.

---

Definitions:

Compounded Monthly

Interest on an investment is calculated and added to the principal balance every month.

Annual Contributions

Regular payments made into a retirement account, investment fund, or savings plan on a yearly basis.

Compounded Semi-annually

The calculation of interest on the initial investment plus any accumulated interest from previous periods, done twice a year.

Retirement Fund

A pool of funds accumulated during an individual's working life, intended to provide financial security upon retirement.