Taylor Company Changed Its Inventory Cost Flow Assumption from FIFO

question 3

Multiple Choice

Taylor Company changed its inventory cost flow assumption from FIFO to LIFO in a period of rising prices. What was the result of the change on ending inventory in the year of the change?

• A) increased ending inventory
• B) decreased ending inventory
• C) no change in ending inventory
• D) cannot be determined from the information given

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Definitions:

Holographic Will

A will entirely handwritten, signed, and dated by the person making it, often without the presence of witnesses.

Testator

A person who makes a will.

Heirs

Individuals legally entitled to inherit a deceased person's property or title.

Escheats

This refers to the state's right to take ownership of property if the owner dies without a will and without heirs.