One Hundred Units of Inventory on Hand at the End

question 110

Multiple Choice

One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each using LIFO. Current net realisable value is $8.00. How would the Cost of sales be affected by the adjusting entry needed under lower- of- cost- and- net- realisable- value?

• A)Cost of sales would go up by $200.
• B)Cost of sales would not be affected.
• C)Cost of sales would go down by $200.
• D)Cost of sales would go down by $80.

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Definitions:

Hydrogen Bonds

Weak bonds between partially positive hydrogen atoms and partially negative atoms (often oxygen or nitrogen) in nearby molecules.

Complementary Base Pairs

The pairing of nitrogenous bases in DNA and RNA through hydrogen bonds, like adenine with thymine (or uracil in RNA), and cytosine with guanine.

RNA Primer

A short strand of RNA needed for DNA replication; it serves as the starting point for DNA synthesis.

Leading Strand

The strand of DNA that is continuously created during the process of DNA replication, following the direction of the replication fork.