La Casita Restaurants Changed from the FIFO Method of Inventory

question 102

Multiple Choice

La Casita Restaurants changed from the FIFO method of inventory costing to the weighted average method during 2016.When reported in the 2016 comparative financial statements,the 2015 inventory amount will be:

• A)Increased.
• B)Decreased.
• C)Increased or decreased,depending on how prices changed.
• D)Unaffected.

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Definitions:

Stimulants

Substances that increase activity in the brain, leading to heightened alertness, attention, and energy.

Secondhand Smoke

Smoke from the tobacco products and exhalations of other people; also referred to as passive smoking.

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A type of cancer that develops in the throat (pharynx), voice box (larynx), or tonsils.

Hydrocarbons

Chemical compounds consisting of hydrogen and carbon.