Which of the Following Is a Disadvantage to Business of the LIFO

question 32

Multiple Choice

Which of the following is a disadvantage to business of the LIFO method of applying costs to inventory?

• A) Current income is matched with the most recent costs of acquiring goods.
• B) It understates the balance sheet value for inventory.
• C) It is difficult for a computer program to apply the method.
• D) If it is allowed for tax purposes, in times of rising prices it results in less tax being paid in the current period.

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Definitions:

Positive Institutions

Organizations or structures in society that promote individual well-being, positive psychology, and the development of strengths and virtues.

Positive Affect

A dimension of emotional experience that reflects the extent to which an individual feels enthusiastic, active, and alert.

Positive Institutions

Refers to organizations or frameworks that contribute to the well-being and positive functioning of individuals and communities.

Positive Emotions

Feelings that are enjoyable or pleasurable, such as happiness, joy, excitement, and love.