An entity changed from the FIFO to the LIFO cost flow assumption for inventories. Assuming that inventory and sales remain constant over time, and that prices are rising, how would the current ratio be changed as a result of converting from FIFO to LIFO?
a. The current ratio did not change.
b. The current ratio increased.
c. The current ratio decreased.
d. The effect on the current ratio cannot be determined from the information given.
C
You might also like to view...
When you're writing a routine reply to a positive message, your readers will generally be ________ what you have to say; therefore, you can use the ________ with a routine reply or positive message
A) interested in; direct approach B) resistant to; indirect approach C) skeptical of; direct approach D) in tune with; indirect approach E) oblivious to; direct approach
Position advertising copytesting was a set of principles originally designed for:
A) evaluating television ads B) evaluating print ads C) monitoring emotional responses D) persuasion analysis
The identification and profiling of distinct groups of buyers who might prefer or require varying product and service mixes is known as ________
A) segmentation B) integration C) disintermediation D) cross-selling E) customization
A direct labor rate variance would occur in which of the following?
A) When a production employee takes an unplanned break B) When a production employee spends more time producing one product than was expected C) When a low-paid production employee performs a task higher than his or her assigned level D) When a production employee incurs overtime hours at the same hourly rate as regular pay