Which of the Following Is True Regarding LIFO and FIFO

question 79

Multiple Choice

Which of the following is true regarding LIFO and FIFO?

• A)In a period of decreasing costs,LIFO results in lower total assets than FIFO.
• B)In a period of decreasing costs,LIFO results in lower net income than FIFO.
• C)In a period of rising costs,LIFO results in lower net income than FIFO.
• D)The amount reported for COGS is based on market value of inventory if LIFO is used.

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