See-Saw Ltd Uses Moving Weighted Average for Its Inventory,which Is

question 4

Multiple Choice

See-Saw Ltd uses moving weighted average for its inventory,which is valued at $276 000.It is considering a change to FIFO,which would decrease the valuation to $245 000.
-Which of the following would be increased by the change?

• A) Retained profits
• B) Income tax payable
• C) Cost of goods sold
• D) Sales

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Definitions:

Suspension

Liquid through which a solid is dispersed and from which the solid separates unless the liquid is kept in motion.

Equilibrium

A state of balance between opposing forces or actions.

Steady State

A condition where all aspects of a system are in balance and unchanging over time, often used in physics, chemistry, and physiology.

Activation

The process of making something active or operative, such as initiating a chemical reaction or stimulating a cell to perform a function.