When Inventory Prices Are Rising,all of the Following Are Reasons

question 27

Multiple Choice

When inventory prices are rising,all of the following are reasons for choosing the LIFO method versus the FIFO method except:

• A)LIFO generally results in lower income taxes paid.
• B)LIFO uses more current costs in calculating cost of goods sold.
• C)LIFO permits management to influence income by the timing of inventory purchases.
• D)LIFO reports the most up-to-date inventory values on the balance sheet.
• E)None of the above is correct.

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Definitions:

Deposit Slip

A document provided by a bank for a depositor to fill out, detailing a deposit transaction's specifics such as date and amount.

Net Deposit

The total amount of money deposited in an account after all deductions, charges, or withdrawals have been subtracted.

Check Register

A record maintained by the account holder documenting checks written, deposits made, and the current balance of a checking account.

Cash Balance

The total amount of money in the form of cash or cash equivalents that a company or an individual possesses at a given time.