Emley Company Has Been Using the LIFO Method of Inventory

question 167

Multiple Choice

Emley Company has been using the LIFO method of inventory valuation for 10 years, since it began operations. Its 2014 ending inventory was $50,000, but it would have been $75,000 if FIFO had been used. Thus, if FIFO had been used, Emley's income before income taxes would have been

• A) $25,000 greater over the 10-year period.
• B) $25,000 less over the 10-year period.
• C) $25,000 greater in 2014.
• D) $25,000 less in 2014.

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Definitions:

Procedural Knowledge

Describes the often unconscious, nondeclarative knowledge of how to do things that underlies many physical skills.

Knot Tying

The act of securely fastening or binding objects together using rope, string, or another flexible material through various techniques and loops.

Autobiographical Knowledge

Refers to a person's memory of personal experiences and events, including the times, places, emotions, and other contextual who, what, when, where, and why details of one's life.