Which of the Following Statements Is Correct When Inventory Prices

question 107

Multiple Choice

Which of the following statements is correct when inventory prices are increasing?

• A)LIFO will result in lower net income and a higher inventory valuation than will FIFO.
• B)LIFO will result in higher net income and lower inventory valuation than will FIFO.
• C)FIFO will result in lower net income and a lower inventory valuation than will LIFO.
• D)FIFO will result in higher net income and a higher inventory valuation than will LIFO.

---

Definitions:

Real Estate Agent

A licensed professional who represents buyers or sellers in real estate transactions, facilitating the sale or lease of properties.

Express Agreement

A clear and unambiguous mutual understanding or contract between parties, typically in written or spoken form, regarding the terms of their arrangement.

Legal Rules

These are principles or directives enacted by a governing body that regulate behavior and are enforceable by the imposition of penalties for violations.

Commission

A fee paid to an agent or employee for transacting a sale, calculated as a percentage of the sale price.