What happens when a company is operating in an inflationary environment?
A. The company's net income will be the same regardless of whether LIFO or FIFO is used.
B. The company's cost of goods sold will be lower if it uses LIFO as opposed to FIFO.
C. The company's assets will be lower if it uses LIFO as opposed to FIFO cost flow.
D. The company's net income will be higher if it uses LIFO than if it uses FIFO.
Answer: C
You might also like to view...
People occupy sacred time and space when they travel on vacation
Indicate whether the statement is true or false
Selective distribution is often used with ________
A) convenience goods B) consumer packaged goods C) nonmass-market goods D) luxury goods
The accounting life of intangible assets is determined by:
A) only their legal lives. B) only their useful lives. C) their legal lives or useful lives, whichever is shorter. D) the tax life mandated by the IRS.
Liquidity refers to the ability to quickly convert an asset into cash without lowering the selling
price. Indicate whether the statement is true or false