Which One of the Following Is Not an Advantage of LIFO

question 74

Multiple Choice

Which one of the following is not an advantage of LIFO?

• A) In periods of rising prices, less income tax is paid.
• B) In periods of rising prices, less holding gains are reported in net income.
• C) Record keeping and financial statement preparation are easier.
• D) Conservative income statements and balance sheet disclosures result from rising prices.