Which of the Following Inventory Method Will Give the Highest

question 87

Multiple Choice

Which of the following inventory method will give the highest net earnings in a period of falling prices?

• A)FIFO
• B)LIFO
• C)Specific Identification Method
• D)Weighted Average Cost

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Definitions:

Private Corporations

Companies that are owned by a small group of individuals and do not offer their shares of stock to the general public.

ASPE

Accounting Standards for Private Enterprises; a set of accounting standards for private companies in Canada.

Mortgage Payable

A liability representing money owed on a long-term loan used to purchase property, typically secured by the property itself.

Financing Activities

Transactions related to raising capital and repaying shareholders, including issuing equity, obtaining loans, and paying dividends.