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.

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Definitions:

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Problem Solver

An individual or tool that identifies, analyzes, and finds solutions for complex or simple issues.

Linguistic-Relativity Hypothesis

The theory that the structure of a language affects its speakers' world view or cognition, suggesting that language and thought are intertwined in complex ways.

Semanticity

The quality of language by which words and symbols have meaning and can be used to communicate complex ideas.