Using the Dollar-Value LIFO Retail Method for Inventory

question 56

Multiple Choice

Using the dollar-value LIFO retail method for inventory,:

• A)Is the same as dollar-value LIFO, except that the inventory is measured at retail, rather than at cost.
• B)Combines retail LIFO accounting with dollar-value LIFO accounting
• C)Allows companies to report inventory on the balance sheet at retail prices.
• D)All of these are correct.

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Definitions:

Permanent

Refers to accounts or records in the general ledger that are not closed at the end of the accounting period, such as assets, liabilities, and equity accounts.

Temporary

Not permanent; lasting for a limited period of time or intended for short-term use.

Employer's Payroll Tax

Taxes that employers are required to pay on behalf of their employees, which may include contributions to social security, Medicare, and unemployment taxes.