One Advantage of LIFO Over FIFO Under Normal Conditions Is

question 40

Multiple Choice

One advantage of LIFO over FIFO under normal conditions is that:

• A)it reports higher retained earnings.
• B)it results in higher cash flows.
• C)it results in higher current ratios.
• D)it results in higher gross margins.

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Definitions:

Erythrocytes

Oxygen-carrying blood cells, also known as red blood cells, which are responsible for delivering oxygen from the lungs to all parts of the body.

Hemoglobin

An iron-containing protein in red blood cells that transports oxygen from the lungs to the tissues of the body.

Platelets

Small blood cells essential for blood clotting, helping to stop bleeding by clumping together and forming plugs in blood vessel injuries.

Phagocytize

The process by which cells, especially immune system cells like macrophages, ingest or engulf other cells, bacteria, or particles.