Henri Company Uses the Average-Cost Inventory Method

question 58

Multiple Choice

Henri Company uses the average-cost inventory method.Its 2010 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.

---

Definitions:

Fourth Amendment

An amendment to the United States Constitution providing protection against unreasonable searches and seizures and requiring any warrant to be judicially sanctioned and supported by probable cause.

Reasonable Expectation

The anticipation of certain outcomes or behaviors based on common sense, previous experiences, or specific circumstances.

Privacy

Privacy pertains to the right of individuals to keep their personal information confidential and protected from unauthorized access.

Corporation

A legal entity that is separate from its owners, with rights and liabilities distinct from those of its shareholders, and the ability to enter into contracts, acquire assets, and conduct business.