"Light a Candle" Working as an Accountant in the Local Government Agency, Elizabeth

question 12

Multiple Choice

"Light a Candle"
Working as an accountant in the local government agency, Elizabeth has always had a liking for candles. She collected thousands of candles over the years - different shapes, sizes, occasions, and colors. After talking with a few co-workers, Elizabeth decided to get a kiosk at the flea market for four weeks before Christmas to sell her candles with her business name: "Light a Candle."

-If Elizabeth starts to take days off from work to staff the kiosk at the flea market,she may be facing

• A)bootstrapping.
• B)conflict of interests.
• C)poisoning the well.
• D)aggrandizing.

---

Definitions:

LIFO Reserve

The difference between the cost of inventory calculated under the Last-In, First-Out method and the FIFO method.

LIFO

Last-In, First-Out, an inventory management method where the most recently produced or acquired items are sold first.

FIFO

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for 'First In, First Out'.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to govern financial reporting.