For each item listed in 1 through 2, place the letter of the accounting effect (a through e) in the space provided. You may use each letter more than once or not at all.
____ 1. A company applies lower-of-cost-or-market for valuing ending inventory when cost is greater than market price.
____ 2. During an extended period of constant prices, a company uses LIFO instead of FIFO.

Question

For each item listed in 1 through 2, place the letter of the accounting effect (a through e) in the space provided. You may use each letter more than once or not at all.
  ____ 1. A company applies lower-of-cost-or-market for valuing ending inventory when cost is greater than market price.
____ 2. During an extended period of constant prices, a company uses LIFO instead of FIFO.

Quizplus · Accepted Answer

The Answer of For each item listed in 1 through 2, place the letter of the accounting effect (a through e) in the space provided. You may use each letter more than once or not at all.
  ____ 1. A company applies lower-of-cost-or-market for valuing ending inventory when cost is greater than market price.
____ 2. During an extended period of constant prices, a company uses LIFO instead of FIFO.

For Each Item Listed in 1 Through 2, Place the Letter