When LIFO Is Used and Inventory Quantities Fall Below the Level

question 20

Multiple Choice

When LIFO is used and inventory quantities fall below the level of the previous period, the situation is called a:

• A)LIFO adjustment.
• B)LIFO failure.
• C)LIFO liquidation.
• D)LIFO materiality.

Know the differences in accounting treatments for capital and operational contributions.

Understand the accounting for volunteer services and donated assets.

Comprehend the encumbrance system for recording obligations.

Recognize the implications of board restrictions versus donor restrictions on contributions.

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Definitions:

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