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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. decreases by 240
B. decreases by 360
C. increases by 360
D. increases by 240
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
A. Option C
B. Option B
C. Option D
D. Option A
NEW QUESTION: 3
How does FortiGate verify the login credentials of a remote LDAP user?
A. FortiGate queries the LDAP server for credentials.
B. FortiGate sends the user entered credentials to the LDAP server for authentication.
C. FortiGate re-generates the algorithm based on the login credentials and compares it against the algorithm stored on the LDAP server.
D. FortiGate queries its own database for credentials.
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