Question: 33. Which statement about the LIFO inventory valuation method is true? a. LIFO liquidations occur when units purchased exceed units sold. b. LIFO gives

33. Which statement about the LIFO inventory valuation method is true? a. LIFO liquidations occur when units purchased exceed units sold. b. LIFO gives a current valuation for ending inventory on the balance sheet. c. A LIFO layer is a group or block of units purchased at a certain unit cost. d. The LIFO conformity rules states that if LIFO is used for financial statements, it must be used for tax returns. 34. Say a company purchases common stock, and we call this treasury stock. What will not happen because of this treasury stock purchase (everything else staying the same)? a. b. C. d. Earnings per share will increase Treasury stock will show as a contra-stockholders' equity account on the balance sheet The company will show a gain from purchase of treasury stock on the income statement Fewer shares of common stock are outstanding.

Step by Step Solution

★★★★★

3.48 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

33 Which statement about the LIFO inventory valuation method is True The correct answer is C A LIFO layer is a group or block of units purchased at a certain unit cost Explanation answer a LIFO liquid... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

(Multiple Choice) 1. What is the best source of income for a corporation? a. Prior-period adjustments b. Continuing operations c. Discontinued operations d. Extraordinary items 2. Leslies Lotion...

(EPS Concepts and Effect of Transactions on EPS) Chorkina Corporation, a new audit client of yours, has not reported earnings per share data in its annual reports to stockholders in the past. The...

McDonalds Corporation is in the business ofwait, we all know what McDonalds does. The companys earnings per share information and an accompanying note relating to its computation of EPS follow....

Ford Motor (automotive) and Caterpillar (heavy equipment) both use the LIFO inventory valuation method. Caterpillar uses it for 80% of its inventories and Ford for 25% of its inventories. Data from...

You are the assistant controller of Duo-Therm Company and are in charge of preparing the financial statements and tax returns. One of your colleagues, the assistant controller in charge of working...

Max Stevenson owns a local drug store. During the past few years, the economy has experienced a period of high inflation. Stevenson has had the policy of withdrawing cash from his business equal to...

The following selected financial information is available for ROC, Inc. Amounts are in millions of dollars. a. Divide the class into groups of four or five students each. Organize the groups into...

2. Create a report outlining the cash flow and submit it to your assessor with an explanation of how you might recover from the deficit this month. Make at least two recommendations for cash recovery...

Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and...

While break bulk cargo ships are largely being scrapped in favour of container ships, they still have some use. Why would that be? Question 8 options: 1) These older ships have lower acquisition and...

1. Describe changes in the Nespresso business from the perspective of a business model 2. Assess Yanick Lang's performance as a business manager 3. Provide your opinion on measures to be taken by...

A diamond producer kept sample data on the starting inventory level of diamonds and the number of days such inventory level is observed: Inventory 0 Level 1 2 3 4 5 9 7 8 Number of 25 45 60 75 80 50...

Your company is scheduled for a facility security clearance (FCL) inspection. You must determine if the company should pay for a pre-inspection audit by a 3rd party. Of those companies that have...

On January 1, 2018, the general ledger of Freedom Fireworks includes the following account balances Debit $101,300 34,200 152,100 68,300 121,000 Credit Accounts Cash Accounts Receivable Inventory...

True & False The basis of an asset must be reduced by the depreciation allowable, 2. Adjusted gross income (AGI) is the basis for a number of phase-outs of deductions. 3. A change to adjusted gross...

On January 1, the wholly-owned Mexican affiliate of a Canadian parent company acquired an inventory of computer hard drives for its assembly operation. The cost incurred was 15,000,000 pesos when the...

What was the reason for Japans Big Bang, and what changes in accounting practice have resulted from it?

Refer to Exhibit 3-6. Required: Which countrys GAAP appears to be the most oriented toward equity investors? Which countrys GAAP appears to be the least oriented toward equity investors? Why do you...

Statistical significance is a measure of the probability that a result could have occurred by chance.

Field experiments test hypotheses experimentally in real-life situations rather than in the laboratory. Field experiments automatically have external validity.

Institutional review boards are committees that review research procedures to make sure that the privacy and safety of participants are protected. Informed consent refers to the willingness of...