If the LIFO Reserve Increases During the Year, and Inventory

question 31

Multiple Choice

If the LIFO reserve increases during the year, and inventory costs are increasing, ________.

• A) cost of goods sold will be higher under FIFO than LIFO
• B) cost of goods sold will be higher under LIFO than FIFO
• C) the journal entry will debit LIFO Reserve
• D) the journal entry will credit Cost of Goods Sold

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Definitions:

Certified Mail

A postal service offering that provides the sender with a mailing receipt and electronic verification that an article was delivered or that a delivery attempt was made.

Termination

The act of bringing an end to something, such as a contract, agreement, or employment.

Employer Liability

The legal responsibility of employers for injuries, damages, or losses their employees cause while performing their job duties.

Crimes

Acts or omissions that violate public law and are punishable by the state through fines, imprisonment, or other penalties.