The LIFO Inventory Method Tends to Smooth Out the Peaks

question 88

True/False

The LIFO inventory method tends to smooth out the peaks and valleys of a business cycle.

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Definitions:

Indemnity

A primary obligation of a third party to pay a debt along with the debtor

Subrogation

The right of the insurer upon payment to take over the rights of the insured in relation to whoever caused the injury.

Guarantor

A person assuming obligation to pay if the debtor does not.

Real Property

Land, buildings attached to the land, and items called fixtures, that is, items that are attached to the land or to a building or to another fixture attached to the land.