If You Wish to Compute Economic Earnings and Are Trying

question 49

Multiple Choice

If you wish to compute economic earnings and are trying to decide how to account for inventory,

• A)FIFO is better than LIFO.
• B)LIFO is better than FIFO.
• C)FIFO and LIFO are equally good.
• D)FIFO and LIFO are equally bad.
• E)None of the options

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Definitions:

Small Business

Any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.

Competitive Area

The space or domain in which businesses compete against each other for market share.

Independently Owned

Refers to a business or property that is owned by an individual or a group without corporate or external control.