Which One of the Following Is Not an Advantage of LIFO

question 37

Multiple Choice

Which one of the following is not an advantage of LIFO?

• A)In periods of rising prices, less income taxes are paid.
• B)In periods of rising prices, less holding gains are reported in net income.
• C)Record keeping and financial statement preparation are easier.
• D)Conservative income statements and balance sheet disclosures result from rising prices.

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Definitions:

Folklorist

A scholar specializing in folklore, the study of traditional beliefs, customs, stories, songs, and practices of a culture or community.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his theories of the collective unconscious and archetypes.

Object-relations View

A theory in psychoanalysis focusing on relationships with others, suggesting that the internal representations of self and others formed during childhood influence one's interactions.

Development

Describes the process of growth or advancement, often in a physical, cognitive, or social-emotional context.