When Prices Are Falling, Valuing Inventory Using the LIFO Method

question 24

Multiple Choice

When prices are falling, valuing inventory using the LIFO method rather than FIFO 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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Definitions:

Synchronous Communications

Real-time exchange of information where participants interact simultaneously, such as in video calls or chat.

Computer-assisted Conference

A meeting or conference in which participants use computer systems to facilitate communication and information exchange.

Video Conference

A technology that allows users in different locations to hold face-to-face meetings without having to move to a single location.

Audio Conference

A virtual meeting in which participants connect and communicate via an audio-only platform, typically through telephone or computer.