Which of the Following Statements Is Correct

question 41

Multiple Choice

Which of the following statements is correct?

• A)FIFO reports lower net income amounts than LIFO when unit costs are increasing.
• B)LIFO reports a higher net income amount than FIFO when unit costs are increasing.
• C)LIFO reports a higher net income amount than FIFO when unit costs are decreasing.
• D)LIFO reports the same amount of net income as FIFO when unit costs are increasing.