The Following Data Was Collected from the Accounting Records of Ambrose

question 36

Multiple Choice

The following data was collected from the accounting records of Ambrose, Inc., for the month of June. 200 units were sold during the month. Ambrose currently uses the FIFO method of valuing inventory. What would have been the difference in Ambrose's ending inventory under the LIFO costing method?

• A) Ending inventory would have been $120 higher.
• B) Ending inventory would have been $120 lower.
• C) Ending inventory is the same under both methods.
• D) The difference cannot be determined using this information.

---

Definitions:

Defect Of Title

A legal issue with the ownership rights of property or real estate, making the transfer of a clear title to the property problematic.

Holder In Due Course

A legal term referring to a person who has received a negotiable instrument in good faith and for value, and thus has certain protections against defenses and prior claims to the instrument.

Endorser

A person who signs a document (usually on its back) transferring their rights to another person.

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on-demand or at a set time, with the payer's name written on it.