All of the Following Are Reasons for Choosing the FIFO

question 68

Multiple Choice

All of the following are reasons for choosing the FIFO versus the LIFO costing method EXCEPT:

• A)FIFO reports the most up- to- date inventory values on the balance sheet.
• B)FIFO uses more current costs in calculating the value of ending inventory.
• C)FIFO generally results in higher income taxes paid.
• D)FIFO is generally more conservative.

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Definitions:

Federal Employees

Individuals employed by the federal government of a country, working in various departments and agencies to administer and implement governmental functions and policies.

Economic Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Deficit Spending

The practice of a government spending more money than it receives in revenue, often used to stimulate economic growth.

Budget Cuts

The reduction in spending and allocation of funds within an organization, government, or institution, often leading to changes in services or operations.