Assuming Rising Costs,the Switch from LIFO to FIFO or Average

question 35

Multiple Choice

Assuming rising costs,the switch from LIFO to FIFO or average cost would most likely have what effect(s) ?

• A)Increase reported net income in the income statement.
• B)Decrease tax obligations to the Internal Revenue Service (IRS).
• C)Increase reported net income and tax obligations.
• D)Decrease reported net income and tax obligations.

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Definitions:

Simple

Easy to understand or do; not complicated.

Skin Traction

A medical treatment method where bandages or other devices are applied to the skin to apply a pulling force on the bones and muscles beneath.

Buck Extension

A type of traction for the lower leg, used in the treatment of fractures of the femur or after hip surgery, to help maintain proper alignment and reduce pain.