When prices are rising, the method of inventory valuation that results in the highest relative net...

 

Transcribed Image Text:

When prices are rising, the method of inventory valuation that results in the highest relative net cash inflow (this means the company gets to hold on to more of its own cash or profits and pay out less in terms of taxes) is: A. FIFO. B. LIFO. C. weighted average. D. inventory methods cannot affect cash inflows or outflows for the company. Explain your answer on how you arrived at your conclusion. When prices are rising, the method of inventory valuation that results in the highest relative net cash inflow (this means the company gets to hold on to more of its own cash or profits and pay out less in terms of taxes) is: A. FIFO. B. LIFO. C. weighted average. D. inventory methods cannot affect cash inflows or outflows for the company. Explain your answer on how you arrived at your conclusion.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below When prices are rising the method of in... View the full answer