A Company Begins the Year with a Zero Balance in the LIFO

question 5

Multiple Choice

A company begins the year with a zero balance in the LIFO Reserve account. Based on an analysis of LIFO and FIFO, the company determines the LIFO Reserve should be $20,000 at the end of the year? Which journal entry is needed?

• A) Debit Cost of Goods Sold for $20,000 and Credit LIFO Reserve for $20,000.
• B) Debit LIFO Reserve for $20,000 and Credit Cost of Goods Sold for $20,000.
• C) Debit Cost of Goods Sold for $20,000 and Credit Inventory for $20,000.
• D) Debit Inventory for $20,000 and Credit Gain on Inventory for $20,000.

Recognize the importance of workplace safety, including regulations and practices that reduce hazards.

Differentiate between various workplace stressors such as task demands, physical demands, and interpersonal demands.

Examine the relationship between personality types (Type A and Type B) and stress experience.

Analyze the impact of workplace design and environmental factors on employee well-being.

---

Definitions:

Price

The amount of money or the value that is considered to be the equivalent of a good or service.

Elasticity of Demand

A measure of how sensitive the quantity demanded of a good is to a change in its price, indicating how consumers' purchasing decisions are affected by price changes.

Natural Gas

A fossil fuel used primarily for heating, electricity generation, and as a fuel for vehicles, consisting mainly of methane and found underground.

Price Increase

A rise in the cost of goods or services over a specific period of time, which can affect purchasing power and economic stability.