Greene Corporation uses the LIFO inventory method
Greene Corporation uses the LIFO inventory method, but most of other companies in Greene’s industry use FIFO. Which of the following best describe one of the adjustments that would be made to Greene’s financial statements to compare that company with other companies in the industry? To adjust Greene’s inventory to the FIFO method, the amount reported for Greene’s ending inventory should be:
A. increase by the ending balance in Greene’s LIFO reserve.
B. decrease by the ending balance in Greene’s LIFO reserve.
C. increase by the change in Greene’s LIFO reserve for that period.
参考解答
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2024-11-01 14:58:12
Ans: A.
Adding the ending balance in the LIFO reserve to the FIFO inventory would equal the ending balance for inventory on a FIFO basis.
(LIFO Reserve = FIFO Inventory – LIFO Inventory )
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