LIFO is considered an income-statement approach for reporting inventory because it:

LIFO is considered an income-statement approach for reporting inventory because it:


A) Always results in a higher amount of net income being reported.

B) Better approximates the value of ending inventory.

C) Better approximates inventory cost necessary to generate revenue.

D) Always results in a lower amount of net income being reported.


Answer: Better approximates inventory cost necessary to generate revenue.


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Financial Accounting

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