If a Company Experiences a Liquidation of a LIFO Inventory

question 98

Multiple Choice

If a company experiences a liquidation of a LIFO inventory layer in the second quarter that is expected to be restored by the end of the annual financial reporting period,the company should

• A) treat the layer as if it were liquidated and include in cost of goods sold the expected replacement cost of the inventory sold.
• B) deplete the LIFO layer as if the interim period were an annual period.
• C) change to an alternative inventory cost method,such as FIFO,so that the of LIFO liquidation is not encountered.
• D) delay the recognition of both revenue and cost of goods sold on the inventory involved until a final determination of the LIFO inventory can be made at the end of the annual period.

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A command in PLC programming that copies data from one address to another.

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