During Periods of Inflation, the Use of FIFO (Rather Than

question 47

Multiple Choice

During periods of inflation, the use of FIFO (rather than LIFO) as the method of accounting for inventories causes

• A) higher reported sales.
• B) higher incomes taxes.
• C) lower ending inventory.
• D) higher incomes taxes and lower ending inventory.
• E) None of the options are correct.

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