Under the LIFO Cost Flow Assumption During a Period of Rising

question 19

Multiple Choice

Under the LIFO cost flow assumption during a period of rising costs,which of the following is false?

• A)Cost of goods sold will be lower under LIFO than under FIFO.
• B)Net income will be lower under LIFO than under FIFO.
• C)Income tax expense will be lower under LIFO than under FIFO.
• D)Ending inventory will be lower under LIFO than under FIFO.

---

Definitions:

Mutually Beneficial

A situation or agreement in which all parties involved receive advantages or benefits from the arrangement or relationship.

Exhibition Market

The sector of the film industry concerned with the distribution and screening of films to the public.

Television

An electronic system of transmitting moving images and sound from a source to a receiver by means of radio waves or cables.

Negative Pickup

A financing agreement where a movie studio agrees to buy the rights to a film after it is completed, typically guaranteeing distribution.