Which of the following is true regarding LIFO and FIFO?
A) In a period of decreasing costs, LIFO results in lower total assets than FIFO.
B) In a period of decreasing costs, LIFO results in lower net income than FIFO.
C) In a period of rising costs, LIFO results in lower net income than FIFO.
D) The amount reported for COGS is based on net realizable value of inventory if LIFO is used.
Answer: C
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.