Of the Three Cost-Flow Assumptions, When Inventory Costs Have Been

question 29

Multiple Choice

Of the three cost-flow assumptions, when inventory costs have been falling and inventory amounts increasing, LIFO results in balance sheet figures that are _____, cost of goods sold will _____, and _____ reported net income

• A)closest to current cost, be out of date, highest
• B)out of date, closest to current cost, highest
• C)closest to current cost, be out of date, lowest
• D)out of date, closest to current cost, lowest
• E)closest to current cost, closest to current cost, highest

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Definitions:

Business Managers

Individuals responsible for overseeing and directing the operations and strategic direction of a business unit or organization.

Time Series

A sequence of data points, typically consisting of successive measurements taken at set intervals over a period of time.

Event Outcome

The result or consequence of a particular event, which can vary widely depending on the nature of the event and the perspectives of those involved.

Forecast

A prediction or estimate of future trends, events, or behaviors based on current data or patterns.