In Periods of Falling Purchase Prices and Increasing Inventory Quantities

question 114

Multiple Choice

In periods of falling purchase prices and increasing inventory quantities, LIFO results in a _____ than either FIFO or the weighted-average cost-flow assumption.

• A)higher cost of goods sold; lower reported periodic income; lower current income taxes
• B)lower cost of goods sold; lower reported periodic income; lower current income taxes
• C)higher cost of goods sold; higher reported periodic income; lower current income taxes
• D)higher cost of goods sold; higher reported periodic income; higher current income taxes
• E)a lower cost of goods sold; higher reported periodic income; higher current income taxes

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Definitions:

Follicle Stimulating Hormone

A hormone secreted by the anterior pituitary gland that promotes the formation of ova or sperm.

Granulosa Cells

Specialized cells found within the ovary that are involved in the development of the oocyte and the production of estrogen.

Theca Folliculi Cells

Cells surrounding the ovarian follicle that work together with granulosa cells to produce estrogen and other substances necessary for egg development.

Clitoris

A sensitive organ located at the front of the vulva in females, composed of erectile tissue and involved in sexual arousal and pleasure.