A Company Uses LIFO in One Year,then Switches to FIFO

question 153

Multiple Choice

A company uses LIFO in one year,then switches to FIFO and then to average-cost.This is a violation of the:

• A)disclosure principle
• B)historical cost principle.
• C)consistency principle.
• D)conservatism principle.

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Definitions:

Cancer

A disease characterized by the uncontrolled division of abnormal cells in the body.

Systemic Lupus Erythematosus

A chronic autoimmune disease that can cause inflammation and damage in various parts of the body, such as the skin, joints, and organs.

Renal Failure

A medical condition where the kidneys lose the ability to remove waste and balance fluids.

"Butterfly" Rash

A facial rash that has the shape of a butterfly, typically spreading across the nose and cheeks, often associated with lupus erythematosus.