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

---

Definitions:

Contribution Revenues

Revenues received by not-for-profit entities from donations, grants, or other forms of financial support.

Deferred Revenues

Deferred revenues are payments received by a company for goods or services that are yet to be delivered or performed, recorded as a liability on the balance sheet.

Merger

A business strategy where two or more companies combine their assets and operations to form a new entity.

Not-for-Profit Entities

Organizations that operate primarily for purposes other than making a profit, focusing instead on fulfilling a societal, educational, charitable, or cultural mission.