Identify Which Inventory Costing Method (LIFO or FIFO) Achieves the Effect

question 171

Multiple Choice

Identify which inventory costing method (LIFO or FIFO) achieves the effect listed in the following items:
-Prices are declining; gross margin is higher with this method.

• A)LIFO
• B)FIFO

Identify the role of cognitive equilibrium in learning and adaptation.

Understand the difference between assimilation and accommodation in cognitive processes.

Recognize the impact of psychoanalytic, behaviorist, and cognitive theories on the understanding of human development.

Appreciate the importance of early childhood experiences as proposed by psychoanalytic theories.

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Definitions:

Depreciation Expense

The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life.

Working Capital

Current assets minus current liabilities, indicating the liquidity available to a business for day-to-day operations.

Closing Entry

An accounting transaction recorded at the end of an accounting period to transfer the balances of temporary accounts to permanent ones.