If All Things Are Equal,except One Company Uses LIFO During

question 19

Multiple Choice

If all things are equal,except one company uses LIFO during inflation and the other uses FIFO,then:

• A)The LIFO company will have a higher inventory turnover.
• B)The FIFO company will have a higher inventory turnover.
• C)The two companies will have the same inventory turnover.
• D)Inventory valuation methods do not effect inventory turnover calculations.