__________ Is a True Statement

question 4

Multiple Choice

__________ is a true statement.

• A)During periods of inflation, LIFO makes the balance sheet less representative of the actual inventory values than if FIFO were used
• B)During periods of inflation, FIFO makes the balance sheet less representative of actual inventory values than if LIFO were used
• C)After inflation ends, distortion due to LIFO will disappear as inventory is sold
• D)During periods of inflation, LIFO overstates earnings relative to FIFO
• E)None of the above