A Retailing Firm Changed from LIFO to FIFO in 2014

question 44

Multiple Choice

A retailing firm changed from LIFO to FIFO in 2014.Inventory valuations for the two methods appear below:
Purchases in 2013 and 2014 were $60,000 in each year.
-Using the information above,choose the following:

• A) $4,000 RE $55,000
• B) $7,000 RE $58,000
• C) $4,000 Earnings $55,000
• D) $7,000 Earnings $58,000

Understand the impact of price changes on the quantity demanded and supplied.

Analyze the effect of external factors such as poor growing seasons on market conditions.

Recognize the role of substitutes and complements in affecting demand.

Understand the factors that cause changes in supply and demand.

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Definitions:

Grant Date

The date on which an employee receives a stock option or grant as part of their compensation package.

Stock-Based Compensation

A method of paying employees or service providers using shares of the company's stock, reflecting a form of non-cash compensation.

APB Opinion

Issued by the Accounting Principles Board, these were intended to shape accounting standards and guidance before the board was replaced by the Financial Accounting Standards Board (FASB).

Black-Scholes Method

A mathematical model used to price European options and assess the potential risks of financial instruments.