Which One of the Following Is an Advantage of LIFO

question 1

Multiple Choice

Which one of the following is an advantage of LIFO?

• A)In periods of rising prices, less income taxes are paid.
• B)In periods of rising prices, more 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 falling prices.

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Definitions:

Dependent Variable

The variable in an experiment that is measured or tested to see if it is affected by changes in another variable (the independent variable).

Number of Collisions

A measure often used in physics and engineering to quantify the frequency at which particles or objects hit each other within a specific area or system.

Real Cigarette

A traditional cigarette made with tobacco as opposed to electronic or synthetic alternatives.

Experimenter Bias

A process where the scientists performing the research influence the results, intentionally or unintentionally, in a direction consistent with their hypothesis.