When Prices Are Falling

question 6

Multiple Choice

When prices are falling:

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

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Definitions:

Senescence

The aging process.

Germination

Resumption of growth of an embryo or spore; occurs when a seed or spore sprouts

Monocot

A group of flowering plants characterized by having one cotyledon (seed leaf), parallel leaf veins, and flower parts usually in multiples of three.

Eudicot

A significant classification of bloom-bearing plants known for possessing dual seed leaves, referred to as cotyledons, during the sprouting process.