In a Period of Declining Prices, Which of the Following

question 44

Multiple Choice

In a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory?

• A)Average cost method
• B)LIFO method
• C)FIFO method
• D)Need more information to answer

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Definitions:

Larva

(Pl., Larvae) An immature form in the life history of some animals; may be unlike the parent.

Characteristic

A distinguishing feature or quality of an organism or object, often used in the identification and description of species.

Closed Circulatory System

A type of circulatory system in which the blood flows through a continuous circuit of blood vessels; characteristic of annelids, cephalopods, and vertebrates. Compare with open circulatory system.

Mollusks

A diverse group of invertebrates that includes snails, slugs, oysters, and octopuses, characterized by a soft body, many with a hard shell.