Assuming Continued Inflation, a Firm That Uses LIFO Will Tend

question 20

Multiple Choice

Assuming continued inflation, a firm that uses LIFO will tend to have a(n) ________current ratio than a firm using FIFO, and the difference will tend to __________ as time passes.

• A)higher; increase
• B)higher; decrease
• C)lower; decrease
• D)lower; increase

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Definitions:

E-to-P Expectancy

The belief that one's effort (E) will lead to a particular level of performance (P).

Self-confidence

The belief in one's abilities, qualities, and judgment, contributing to an individual's self-assuredness and ability to face challenges.

Four-drive Theory

A model that identifies four basic motivational drives—the drive to acquire, bond, comprehend, and defend—that influence human behavior.

Hierarchy Of Needs

A motivational theory in psychology proposed by Abraham Maslow, which is often depicted as a pyramid with five levels of basic human needs, from physiological to self-actualization.