Which of the Following Would Not Be a Reasonable Conclusion

question 33

Multiple Choice

Which of the following would not be a reasonable conclusion when comparing LIFO-FIFO under an inflationary condition?

• A)FIFO generally results in a lower profit than does LIFO.
• B)FIFO reports a higher inventory ending balance.
• C)LIFO results in a lower profit figure than does FIFO.
• D)LIFO would probably be used for inventory that has a high turnover rate because there would be an immaterial difference in the results between LIFO ad FIFO.
• E)The cash flow under LIFO is greater than the cash flow under FIFO by the difference in the resulting tax between the two methods.

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Definitions:

Economic Interpretation

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Development of Capitalism

The historical process and economic system changes that led to the emergence and expansion of capitalism, characterized by private property, market economy, and profit motive.

Max Weber

A German sociologist, philosopher, and political economist whose works are fundamental to the modern field of sociology, known for his ideas on the Protestant ethic and the development of capitalism.

Feminism

A movement for gender equality, advocating for women's rights on the grounds of political, social, and economic equality to men.