Which One of the Following Is Not an Advantage of LIFO

question 37

Multiple Choice

Which one of the following is not an advantage of LIFO?

• A)In periods of rising prices, less income taxes are paid.
• B)In periods of rising prices, less holding gains are reported in net income.
• C)Record keeping and financial statement preparation are easier.
• D)Conservative income statements and balance sheet disclosures result from rising prices.

---

Definitions:

Disoriented Persons

Individuals who experience confusion regarding time, place, or personal identity.

Persons Aged

Refers to individuals of a certain age or age group.

Projected Increase

An estimation or forecast of the amount by which something is expected to grow in the future.

Kubler-Ross Model

A theory introduced by Elisabeth Kübler-Ross outlining five stages of grief—denial, anger, bargaining, depression, and acceptance—originally conceived to understand the coping process of terminally ill patients.