Choose the Statement Which Is Correct

question 3

Multiple Choice

Choose the statement which is correct. Assume that inventory prices are rising.

• A)The LIFO method gives the highest closing inventory figure in the statement of financial position.
• B)The FIFO method gives the highest closing inventory figure in the statement of financial position.
• C)The FIFO method gives the lowest closing inventory figure in the statement of financial position.
• D)The LIFO method gives the lowest figure for cost of sales.

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Definitions:

Conscious Level

The degree of awareness an individual has of their environment and their own existence, sensations, and thoughts.

Encoding

The method of transforming data into a format that can be retained in memory.

Retention

The ability to keep or hold information in memory, often discussed in the context of learning effectiveness.

Understanding

The ability to grasp the meaning, significance, or nature of something, often through insight, learning, or comprehension.