A Change in Inventory Reporting from LIFO to FIFO Is

question 31

Multiple Choice

A change in inventory reporting from LIFO to FIFO is:

• A)An extraordinary item.
• B)A discontinued item.
• C)Not allowed once lower of cost or market is applied.
• D)Allowed,if it improves the usefulness of information in the financial statements.
• E)Not reported,as it is considered a change in accounting estimate.

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Definitions:

Financial Control

A management function that focuses on monitoring and directing an organization's financial resources and operations to meet its objectives.

Ethical Failure

Situations where individuals or organizations fail to act in a morally right or legally prescribed manner, leading to harm or corruption.

Business Incubators

Organizations designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services.

Business Accelerators

Organizations or programs that offer support services and funding opportunities to startups or early-stage businesses to spur their growth.