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NEW QUESTION: 1
A firm using LIFO accounting has a LIFO reserve of 600, with a LIFO ending inventory of 4,900. It is currently in the 40% tax bracket. If it switches to FIFO accounting, it's equity ________.
A. increases by 240
B. increases by 360
C. decreases by 240
D. decreases by 360
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The presence of a LIFO reserve implies that by following LIFO, the firm has been able to deduct higher COGS from gross income than under FIFO (remember that LIFO reserve equals inventory value under FIFO minus inventory value under LIFO and this will be positive when the COGS under FIFO is lower than that under LIFO). thus, the retained earnings (and hence equity) is understated by LIFO Reserve*(1 - tax rate). Therefore, when the firm switches from LIFO to FIFO, the equity is increased by 600*(1 - 0.4) = 360.

NEW QUESTION: 2
Click the exhibit.

Which of the following best describes the output from the Nokia 7750 SR?
A. RSVP-TE has signaled both VPRN and LSP labels.
B. MP-BGP has signaled a VPRN label.
C. MP-BGP has signaled both VPRN and LSP labels.
D. RSVP-TE has signaled a VPRN label.
Answer: B

NEW QUESTION: 3
---

A. Option C
B. Option B
C. Option A
D. Option D
Answer: C

NEW QUESTION: 4
You are conducting a penetration test against a company and you would like to know a personal email address of John, a crucial employee. What is the fastest, cheapest way to find out John's email address.

A. Send an email to John stating that you cannot send him an important spreadsheet attachment file to his business email account and ask him if he has any other email accounts
B. Search in Google for his personal email ID
C. Call a receptionist and ask for John Stevens' personal email account
D. Call his wife and ask for his personal email account
Answer: A