When Costs to Purchase Inventory Are Falling Over Time,using LIFO

question 64

Multiple Choice

When costs to purchase inventory are falling over time,using LIFO leads to reporting ______ cost of goods sold and ______ net income than FIFO.

• A) lower, lower
• B) higher; higher
• C) lower; higher
• D) higher; lower

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Definitions:

Major Organic Product

The primary product of an organic reaction, typically forming in the greatest amount compared to any other products.

Transformation

A thorough or dramatic change in form or appearance, commonly used to describe a significant change in a chemical substance or entity.

Reagents

Substances or compounds added to a system to bring about a chemical reaction or test for the presence of another substance.

Pentanal

An aldehyde with the formula C5H10O, characterized by a distinct odor and used in flavorings and perfumes.