During a Period of Rising Prices, the FIFO Technique of Inventory

question 173

True/False

During a period of rising prices, the FIFO technique of inventory valuation will result in a lower net income figure than would the LIFO technique.

---

Definitions:

Quantitative Assessment

The evaluation or measurement of something based on quantity or numbers rather than subjective characteristics.

Reporting Unit

A segment or component of a company for which financial information is available and reviewed regularly by the segment's or the entire company's management.

Consolidated Balance Sheet

A consolidated balance sheet combines the financial statements of a parent company and its subsidiaries into a single document, showing the total assets, liabilities, and equity of the consolidated entity.

Fair Value

The estimated market price of an asset or liability, reflecting what a willing buyer would pay a willing seller in an arm's length transaction.