When Prices Are Rising, Valuing Ending Inventory Using the FIFO

question 9

Multiple Choice

When prices are rising, valuing ending inventory using the FIFO method rather than LIFO gives:

• A) inventory a higher value but lowers net income.
• B) inventory a lower value and also lowers net income.
• C) both inventory and net income a higher value.
• D) inventory a lower value and net income a higher value.

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