Note 2 indicates that, “Inventories valued on the LIFO basis totaled ¥94,578 million and¥50,037 million at 31 December 2008 and 2009, respectively.” Based on this, the LIFOreserve should most likely:A. increase.B. decrease.C. remain the same.

Note 2 indicates that, “Inventories valued on the LIFO basis totaled ¥94,578 million and¥50,037 million at 31 December 2008 and 2009, respectively.” Based on this, the LIFOreserve should most likely:A. increase.B. decrease.C. remain the same.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Note 2 indicates that, “Inventories valued on the LIFO basis totaled ¥94,578 million and
¥50,037 million at 31 December 2008 and 2009, respectively.” Based on this, the LIFO
reserve should most likely:
A. increase.
B. decrease.
C. remain the same.

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