Which of the Following Inventory Method Will Give the Highest

question 74

Multiple Choice

Which of the following inventory method will give the highest net earnings in a period of rising prices?

• A)FIFO
• B)LIFO
• C)Specific Identification Method
• D)Weighted Average Cost

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Definitions:

Warranties

Promises made by a seller to a buyer regarding the condition, functionality, or reliability of a product or service.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Holder

An individual or entity that legally possesses a negotiable instrument, like a check or bond, and has the right to enforce its terms.

Immunity

A provision or status that protects a person or entity from legal action or liability under certain conditions.