The Appropriate Journal Entry for the Transactions Involving the LIFO

question 93

Multiple Choice

The appropriate journal entry for the transactions involving the LIFO reserve and market value adjustments is determined by the particular situation in the firm.If LIFO inventory is greater than FIFO inventory,

• A)this would be an unusual situation,but it might occur in a year when the company reduces the quantity of inventory on hand
• B)this would be an unusual situation,but it might occur in a year when the company increases the quantity of inventory on hand
• C)this would be a normal situation,and usually occurs in a year when the company reduces the quantity of inventory on hand
• D)this would be a normal situation,and usually occurs in a year when the company increases the quantity of inventory on hand

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The period following the American Civil War focused on reintegrating the Southern states back into the United States, restoring national unity.

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