Which of the Following Statements About the Use of the LIFO

question 52

Multiple Choice

Which of the following statements about the use of the LIFO assumption is NOT true?

• A) In times of inflation,it produces a higher cost of goods sold than FIFO.
• B) In times of falling prices,it produces lower income tax than FIFO.
• C) The LIFO assumption matches revenues with expenses better than FIFO or average.
• D) The LIFO assumption is affected by whether its amounts are determined using the periodic or perpetual control methods.

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