If, in Year 1, a Company Used LIFO; Year 2

question 65

Multiple Choice

If, in year 1, a company used LIFO; year 2, FIFO; and in year 3, moving average cost for inventory valuation, which of the following assumptions, constraints, or principles would be violated:

• A) cost.
• B) time period.
• C) matching.
• D) consistency.
• E) materiality.

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Definitions:

Radical

Describes ideas, actions, or individuals that advocate for thorough or complete social or political reform.

Conservative

A political and social philosophy promoting traditional institutions in the context of culture and civilization, emphasizing stability, continuity, and a cautious approach to change.

American System

An economic plan that played a significant role in American policy during the first half of the 19th century, advocating for a strong role for federal government in the economy, including tariff protection, national banking, and internal improvements.

Federal Government

The national government of a federated state, which holds the authority to govern at a level above individual states or provinces, typically responsible for the country's foreign policy, defense, and national laws.