The Use of the LIFO Method of Inventory Valuation

question 82

Multiple Choice

The use of the LIFO method of inventory valuation

• A)assigns the cost of the most recent purchases to the ending inventory.
• B)results in the same valuation as the specific identification method in a time of rising prices.
• C)results in the lowest reported net income in a time of rising prices.
• D)results in the highest reported net income in a time of rising prices.

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Definitions:

Year-End Payments

Financial obligations that are due or paid at the end of the fiscal year, such as bonuses or tax liabilities.