Compared to a company that uses the FIFO method, during periods of rising prices a company that
Question:
Compared to a company that uses the FIFO method, during periods of rising prices a company that uses the LIFO method will most likely appear more:
A. liquid.
B. efficient.
C. profitable.
Assume the companies use a periodic inventory system.
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The correct answer is B Efficient To understand why its necessary to understand what these two inventory accounting methods FIFO FirstIn FirstOut and ...View the full answer
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Related Book For
International Financial Statement Analysis CFA Institute Investment Series
ISBN: 9780470287668
1st Edition
Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie
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