HH Company Uses LIFO

question 5

Multiple Choice

HH Company uses LIFO. HH disclosed that if FIFO had been used, inventory at the end of 2009 would have been $20 million lower than the difference between LIFO and FIFO at the end of 2008. Assuming HH has a 30% income tax rate:

• A)Its reported cost of goods for 2009 would have been $14 million less if it had used FIFO rather than LIFO for its financial statements.
• B)Its reported cost of goods for 2009 would have been $20 million less if it had used FIFO rather than LIFO for its financial statements.
• C)Its reported cost of goods sold for 2009 would have been $14 million higher if it had used FIFO rather than LIFO for its financial statements.
• D)Its reported cost of goods sold for 2009 would have been $20 million higher if it had used FIFO rather than LIFO for its financial statements.

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Definitions:

Behaviorist Theorists

Psychologists who advocate for behaviorism, emphasizing the importance of observable actions and external stimuli in studying human and animal behavior.

Exogenous Factors

External influences that impact behavior or development, originating from outside the organism.

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