In a Period of Inflation, Which of the Following Combinations

question 138

Multiple Choice

In a period of inflation, which of the following combinations of accounting methods will yield the lowest amount of current earnings?

• A) LIFO and double-declining-balance method
• B) FIFO and straight-line method
• C) LIFO and straight-line method
• D) FIFO and double-declining-balance method

---

Definitions:

State Agency

A government organization that administers a specific function or area of activity at the state level.

First Amendment

The amendment to the U.S. Constitution that protects freedoms such as speech, religion, and assembly.

City Ordinance

A rule or law established by a local government authority to regulate behavior within the city limits.

Free Speech

The freedom to share one's views and thoughts without worry of punishment or suppression from the government.