If a Company Uses the LIFO Inventory Costing Method,when Would

question 215

Multiple Choice

If a company uses the LIFO inventory costing method,when would a LIFO inventory liquidation occur?

• A) when the company buys more merchandise during the accounting period than it sells
• B) when the company cannot determine the ending inventory because it has been destroyed or stolen
• C) when the company changes its inventory method from FIFO to LIFO.
• D) when the company sells more merchandise during the accounting period than it purchased

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Definitions:

Restatement Third

A collection of volumes that attempts to distill, clarify, and update the common law in the United States, as applicable to various areas of law.

Torts

are civil wrongs recognized by law as grounds for a lawsuit, resulting in injury or harm constituting the basis for a claim by the injured party.

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