Which of the Following Would Not Be a Reasonable Conclusion

question 52

Multiple Choice

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

• A) Lifo generally results in a lower profit than does fifo.
• 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 and 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:

Group Work

A method where individuals collaborate, utilizing their diverse skills and viewpoints, to achieve a common goal.

Domestic Violence

A pattern of behavior in any relationship that is used to gain or maintain power and control over an intimate partner.

Essential Elements

Fundamental components or ingredients necessary for a process or system to function effectively.

Single-subject Design

A research design that focuses on the responses of one participant to document the effect of a variable.