When Comparing the FIFO and LIFO Inventory Methods

question 38

Multiple Choice

When comparing the FIFO and LIFO inventory methods:

• A)LIFO reports inventory at net realizable value.
• B)LIFO reports the most up-to-date inventory cost on the balance sheet.
• C)FIFO results in the most realistic net income figure.
• D)FIFO matches old inventory costs against revenue.

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Definitions:

Obsessive-compulsive Personality Disorder

A disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and mental and interpersonal control, at the expense of flexibility, openness, and efficiency.

Avoidant Personality Disorder

A mental health condition characterized by a long-standing pattern of extreme shyness, feelings of inadequacy, and sensitivity to rejection.

Cognitive Therapists

Mental health professionals specializing in therapies that identify and change destructive or disturbing thought patterns that have a negative influence on behavior and emotions.

Schizotypal Personality Disorder

A condition of the mind manifesting with intense social distress, chaotic thoughts, mistrustful ideations, a detachment from the surroundings, temporary psychotic episodes, and frequently atypical beliefs.