Henri Company Uses the Average-Cost Inventory Method

question 74

Multiple Choice

Henri Company uses the average-cost inventory method. Its 2014 ending inventory was €40,000, but it would have been €60,000 if FIFO had been used. Thus, if FIFO had been used, Henri's income before income taxes would have been

• A) €20,000 greater.
• B) €20,000 less.
• C) the same.
• D) not determinable without the tax rate.

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Definitions:

Postpartum Adjustment

The process mothers undergo to adapt physically, emotionally, and psychologically after childbirth.

Corticosteroids

A class of steroid hormones that are produced in the adrenal cortex and are involved in a wide range of physiological processes including stress response, immune response, and regulation of inflammation.

Respiratory Distress Syndrome

A serious breathing disorder often seen in premature infants, caused by the lack of a slippery substance called surfactant in the lungs.

Maternal Mortality

The death of a woman while pregnant or within 42 days of termination of pregnancy, from any cause related to or aggravated by the pregnancy or its management.