The Income Taxes Saved by Using LIFO Instead of FIFO

question 107

Multiple Choice

The income taxes saved by using LIFO instead of FIFO are equal to ________.

• A) the tax rate times the change in the ending inventory from last year to the current year
• B) the tax rate times the cost to retail ratio
• C) the tax rate times the LIFO reserve
• D) the tax rate times the change in the LIFO reserve

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Definitions:

Synthesis

The process of combining various elements or components to form a coherent whole, often referring to chemical synthesis in chemistry or the integration of ideas in intellectual contexts.

Enzymatic Degradation

The process by which enzymes break down substances into simpler molecules, often utilized in recycling or waste management of biological entities.

Acetylcholine

A neurotransmitter involved in many functions, including muscle activation, heart rate, memory, and attention, within both the central and peripheral nervous systems.

Reuptake

The process by which neurotransmitters are taken back into the neurotransmitter-releasing neuron after being released into the synaptic cleft, helping to terminate the signal between neurons.