LIFO (Last In, First Out) would likely result in lower taxes during inflation because it matches the most recent, higher costs against revenues.

FIFO results in lower cost of goods sold and higher net income during periods of rising prices.

In a period of rising prices, LIFO results in lower taxable income because it matches higher costs against revenues.

In a period of rising prices, LIFO would show the lowest ending inventory value.

Accumulated depreciation accounts are classified as contra-assets because they reduce the value of the related asset on the balance sheet.

In a trial balance, expenses are typically recorded as debits, which increase the total debits in the trial balance.

Equity is calculated as Total Assets - Total Liabilities, which is $100,000 - $60,000 = $40,000.

The difference that needs to be adjusted is $20,000 - $18,000 = $2,000.

A greater credit side indicates a potential error in recording transactions.

If total debits do not equal total credits in a trial balance, it indicates that there is an error in the accounting records that needs to be investigated.

In a trial balance, the total debits must equal the total credits to ensure the accounting equation is balanced.

Accounts Payable typically has a credit balance, as it represents amounts owed to creditors.

Accounts Payable typically has a credit balance, as it represents amounts owed to creditors.

Accounts Payable is classified as a liability in the trial balance, representing amounts owed to creditors.

If total debits exceed total credits or total credits exceed total debits, it indicates a potential error in the accounting records.

Accounts Payable typically has a credit balance, representing amounts owed to suppliers.

NPV stands for Net Present Value, which is the difference between the present value of cash inflows and outflows.

LIFO (Last In, First Out) is not accepted under IFRS accounting standards, although it is allowed under US GAAP.

The Income Statement shows the company's profitability over a specific period.

The Income Statement is prepared first to determine the profit or loss, which is then used in the Balance Sheet.

Goodwill is defined as the excess of the purchase price over the fair value of the net identifiable assets acquired in an amalgamation.

Salvage value refers to the estimated resale value of an asset at the end of its useful life.

Net profit is calculated as total revenue minus total expenses.

FIFO (First-In, First-Out) is least likely to affect reported net income during periods of rising prices, as it results in lower cost of goods sold and higher net income.

In the declining balance method, the depreciation rate is applied to the book value of the asset, which decreases over time.

In the Declining Balance Method, the depreciation expense is determined by applying a fixed depreciation rate to the book value of the asset at the beginning of each period.

Owner's equity is calculated as total assets minus total liabilities.

The net profit is transferred to the Capital Account in the final accounts of a sole trader.

Cost of Goods Sold is an expense that is deducted from sales revenue to calculate gross profit.

In the preparation of a trial balance, all accounts with balances, including assets, liabilities, equity, revenues, and expenses, are included.