Given the Following Data, What Would the Net Income Be

question 19

Multiple Choice

Given the following data, what would the net income be if the company uses LIFO?

• A)$ 8,960
• B)$12,720
• C)$ 6,800
• D)$13,440

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Definitions:

Profits and Losses

Refers to the financial gains and expenses incurred by a business, showing whether it has made a profit or suffered a loss over a particular period.

Capital Account Balances

The amounts in the accounts of partners or shareholders representing their contributions plus their share of net income or minus their share of losses.

Predistribution Plan

A strategic plan detailing how assets or profits will be allocated or distributed before the actual distribution takes place.

Profits and Losses

The financial gains or losses resulting from business operations after accounting for revenues and expenses.