Which of the Following Is True Regarding LIFO and FIFO

question 89

Multiple Choice

Which of the following is true regarding LIFO and FIFO?

• A)In a period of decreasing costs,LIFO results in lower total assets than FIFO.
• B)In a period of decreasing costs,LIFO results in lower net income than FIFO.
• C)In a period of rising costs,LIFO results in lower net income than FIFO.
• D)The amount reported for COGS is based on market value of inventory if LIFO is used.

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Definitions:

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, generating oxygen as a byproduct.

Anaerobic

Growing or metabolizing in the absence of molecular oxygen. Compare with aerobic.

Few Organisms

A term referring to a small number or limited diversity of living entities in a given area or ecosystem.

Mineral Rich

Referring to a substance, soil, or area containing a beneficial concentration of minerals important for biological processes or commercial use.