31．Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
An analyst is least likely to adjust a company's reported operating income for the effects of a decline in LIFO reserves if the decline in the LIFO reserve is the result of:
Select exactly 1 answers from the following:
A. price declines.
B. strikes by union workers.
C. a decline in the number of units held in inventory.
D. industry-wide conditions leading to restructurings and/or write-downs for other companies.
答案和详解如下！
Feedback: Correct answer: A
The Analysis and Use of Financial Statements, 3rd edition, Gerald I. White, Ashwinpaul C. Sondhi, and Dov Fried (Wiley, 2003), pp. 211?12 2006 Modular Level I, Vol. II, pp. 774-775 Study Session 9-39-c discuss the reasons why a LIFO reserve might decline during a given period and discuss the implications of such a decline for financial analysis
LIFO reserves can decline because of the liquidation of inventories or because of price declines. Price declines are a normal part of a firm抯 operating results and do not require adjustment.
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发表于 2006-11-22 11:01
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