Question: When comparing the weighted average and FIFO inventory cost formulas during a period when prices are rising, which of the following statements is correct? a.

When comparing the weighted average and FIFO inventory cost formulas during a period when prices are rising, which of the following statements is correct?

a. FIFO will result in a lower inventory balance reported on the balance sheet.

b. Weighted average will result in a higher cash flow.

c. FIFO will result in a higher profit reported on the income statement.

d. Weighted average will result in a higher gross profit reported on the income statement.

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