Company a Uses the FIFO Inventory Method and Company B

question 68

Multiple Choice

Company A uses the FIFO inventory method and Company B uses the LIFO method.If prices are rising and there are no other significant differences between the companies,which of the following is correct?

• A)Company A will report a higher current ratio and lower earnings per share than Company B.
• B)Company A will report a higher current ratio and higher earnings per share than Company B.
• C)Company A will report a lower current ratio and higher earnings per share than Company B.
• D)Company A will report a lower current ratio and lower earnings per shares than Company B.

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Definitions:

Physical Symptoms

Observable or perceivable signs of a possible medical condition experienced by an individual.

Physiological Basis

The underlying physical and biological principles that explain an organism's behavior or bodily function.

Dissociative Identity Disorder

A severe form of dissociation, a mental process which produces a lack of connection in a person's thoughts, memory, and sense of identity.

Hypnosis

A trance-like state of heightened focus and concentration often used for therapeutic purposes, typically induced by another person.