Which Inventory Costing Method Results in the Highest Inventory Balance

question 204

Multiple Choice

Which inventory costing method results in the highest inventory balance during a period of rising purchase prices?

• A) weighted average cost
• B) FIFO
• C) LIFO
• D) specific identification

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Definitions:

Investing Activities

Activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Comparative Balance Sheet

A financial statement that presents a company's financial position at different times, side by side, to allow for performance comparison.

Cash Dividends

Payments made by a company from its earnings to its shareholders in the form of cash.

Operating Activities

Comprises the primary activities of a business that relate to providing goods and services, generating revenue, and paying expenses.