When Comparing the Results of LIFO and FIFO When Inventory

question 49

Multiple Choice

When comparing the results of LIFO and FIFO when inventory costs are decreasing:

• A)cost of goods sold will be the lowest using FIFO.
• B)ending inventory will be the highest using FIFO.
• C)cost of goods sold will be the highest using LIFO.
• D)ending inventory will be the highest using LIFO.

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Definitions:

Cult of Domesticity

A prevailing value system among the upper and middle classes during the 19th century in the United States and Britain that emphasized the virtues of women in their roles as mothers and housewives.

Marquis de Lafayette

A French aristocrat and military officer who played a significant role in the American Revolution by aiding the Thirteen Colonies in their quest for independence from Britain.

American Independence

The historical event achieved in 1776 when the Thirteen Colonies successfully declared their independence from British rule, marked formally by the Declaration of Independence.