In 2014,a Company Changed from the FIFO Method of Accounting

question 53

Multiple Choice

In 2014,a company changed from the FIFO method of accounting for inventory to LIFO.The company's 2013 and 2014 comparative financial statements will reflect which method or methods? 2013 2014

• A) LIFO LIFO
• B) LIFO FIFO
• C) FIFO FIFO
• D) LIFO either LIFO or FIFO

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Definitions:

Attitude

A psychological construct representing an individual's degree of like or dislike for an item.

Belief

An acceptance that something exists or is true, especially one without proof.

Fundamental Attribution Error

A cognitive bias that causes people to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Good Actions

Behaviors or deeds that are ethically right, beneficial to others, or contribute positively to society.