Which of the Following Statements Is Correct When Inventory Prices

question 67

Multiple Choice

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

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

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