A Firm Using FIFO Had a Beginning Inventory of $48,000

question 155

Multiple Choice

A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000, and a pretax income of $400,000.If it had used LIFO, its beginning inventory would have been $20,000, and its ending inventory would have been $16,000.From the information provided, one can conclude that:

• A)quantities increased and prices decreased.
• B)quantities decreased and prices increased.
• C)prices increased but we cannot conclude what happened to quantities.
• D)quantities decreased but we cannot conclude what happened to prices.
• E)not enough information to reach a conclusion.

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Definitions:

Liberal Internationalism

A foreign policy doctrine that advocates for a world order based on rules, cooperation among nations, and the promotion of democracy, human rights, and economic development.

Moral Imperialism

Refers to the practice of enforcing a nation's perceived ethical standards and values on another country, often through colonialism or foreign policy.

Foreign Policy

A government's strategy in dealing with other nations, including diplomacy, military actions, trade relations, and cultural exchanges.

Roosevelt

Refers to either Theodore Roosevelt, the 26th President known for his progressive policies and conservation efforts, or Franklin D. Roosevelt, the 32nd President who led the U.S. during the Great Depression and World War II.