A Change from FIFO to LIFO in a Period of Rising

question 109

Multiple Choice

A change from FIFO to LIFO in a period of rising prices will

• A)decrease both the current ratio and the inventory turnover ratio.
• B)increase both the current ratio and the inventory turnover ratio.
• C)increase the current ratio and decrease the inventory turnover ratio.
• D)decrease the current ratio and increase the inventory turnover ratio.

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Definitions:

Emergencies

Situations that arise suddenly and require immediate action due to posing a threat to health, life, property, or environment.

Groupthink

Is group pressure to conform despite individual misgivings.

Pressured

Feeling the influence or persuasion to do something, often involving stress or tension from external forces or expectations.

Large

Of considerable or significant size, extent, or capacity.