The Appropriate Journal Entry for the Transactions Involving the LIFO

question 102

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)cost of goods sold is credited
• B)cost of goods sold is debited
• C)the allowance account is debited
• D)the allowance account is credited
• E)the LIFO reserve account is debited
• F)both A and C
• G)both B and D

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Definitions:

Emotional Displays

Observable manifestations of emotions through facial expressions, body language, and other nonverbal cues.

Emotionally Literate

The ability to understand and express feelings effectively, recognizing one's own emotions and those of others.

Nonverbal Behavior

Communication without the use of spoken language, involving gestures, facial expressions, body language, and other physical cues.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often through art, dialogue, or therapy.