Which of the following statements is not a characteristic of the LIFO method of pricing inventory?
A. During a period of rising prices, LIFO tends to minimize the amounts of income taxes owed.
B. The cost of goods sold is measured in relatively current costs.
C. During a period of falling prices, LIFO tends to maximize the amounts of income taxes owed.
D. Inventory is valued at relatively current costs.
Answer: D
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Walter Co. declared a cash dividend. On the payment date of the dividend, its:
A. liabilities decreased and its common stock decreased. B. assets decreased and its stockholders' equity increased. C. assets decreased and its liabilities decreased. D. assets decreased and its stockholders' equity decreased.
Mr. Berkey deposits $10,000 in a money market account at his local bank. He receives annual interest of 8% for 7 years. How much interest will he earn on his investment during this time period?
A) $17,140 B) $7,140 C) $17,180 D) $7,180
About 90% of Internet users in the United States are now online buyers
Indicate whether the statement is true or false
A firm's overall cost of capital that is a blend of the costs of the different sources of capital is known as the firm's ________
A) weighted average cost of capital B) cost of equity infusion C) cost of debt D) cost of preferred stock