1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
o-na [289]
3 years ago
13

In times of falling prices, choosing LIFO over FIFO as an inventory cost method would affect the financial statements as follows

: Question 14 options: a) Cost of goods sold will be higher and ending inventory will be lower b) Cost of goods sold will be higher and ending inventory will be higher c) Cost of goods sold will be lower and ending inventory will be higher d) Cost of goods sold will be lower and ending inventory will be lower
Business
1 answer:
stiv31 [10]3 years ago
4 0

Answer:

C. Cost of goods sold will be lower and ending inventory will be higher.

Explanation:

Last-in-first-out (LIFO) gives assumption that the most recent inventory purchases are sold first. First-in-first-out (FIFO) gives assumption that the oldest inventory purchases are sold first. In times of falling prices, LIFO will assume they sell those inventories that are more recent first, bringing about a lower cost of goods sold number. Then inventory purchases that are older will then remain in ending inventory causing the ending inventory to be higher under LIFO

You might be interested in
An online bank is offering to pay 0.25 % interest per month on deposits. Your local bank offers to pay 0.75 % interest quarterly
Liono4ka [1.6K]

Both have the same interest rate which is 3%.

<h3>What is interest?</h3>
  • In finance and economics, interest is the payment of an amount above the repayment of the principal sum by a borrower or deposit-taking financial institution to a lender or depositor at a specific rate by a borrower or depositor.
  • It differs from a fee that the borrower may pay to the lender or a third party.

To find the higher interest rate:

Given that,

  • Interest rate per month = 0.25%
  • Interest rate per quarter = 0.75%

If we calculate the annual interest for monthly and quarterly rates, it will be:

Monthly

  • No. of months in a year = 12
  • Monthly rate = 0.25%

So,

  • Annual Interest = 0.25 × 12
  • = 3%

Quarterly

  • No. of quarters in a year = 4
  • Quarterly rate = 0.75%

So,

  • Annual Interest = 0.75 × 4
  • = 3%

Therefore, both have the same interest rate which is 3%.

Know more about your interests here:

brainly.com/question/2294792

#SPJ4

4 0
1 year ago
Someone please help me out here
trapecia [35]

Answer:

Pretty sure that's false

6 0
3 years ago
What is a lien and when can it be used/
Talja [164]

A lien is a claim against an asset, often to get a loan. All debts related have to be paid before it is removed.

3 0
3 years ago
Read 2 more answers
Ow did easy consumer credit help the u.s. economy during the early 1920s?
alexandr1967 [171]
People bought more goods and created high demand for new products
5 0
3 years ago
How much money does an employee working for a salary of 50,000 per year get paid each month
zhenek [66]
Divide 50,000 by 12 to get 4,166.67
8 0
3 years ago
Read 2 more answers
Other questions:
  • Local companies have expressed their enthusiasm about hiring UCF graduates who are able to sustain effort and interest in long t
    14·1 answer
  • An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays
    10·1 answer
  • MICROECONOMICS Assignment. ANYONE WHO CAN COMPLETE THIS OR HELP ME WITH HOW TO DO IT ON MY OWN. It would be greatly appreciated.
    14·1 answer
  • Last year, Natalie submitted her idea for a redesigned bicycle seat on the Fast Flyers Bikes website. She learned this week that
    12·1 answer
  • Susan Orman wants to pay $1,550 semiannually to her granddaughter for 10 years for helping her around the house. If Susan can in
    8·1 answer
  • Which of the following statements about cash equivalents is FALSE?
    6·1 answer
  • Electronic communication:_____.
    7·1 answer
  • Indiana Co. began a construction project in 2021 with a contract price of $161 million to be received when the project is comple
    10·1 answer
  • How were special economic zones (sezs) supposed to help the chinese economy? by establishing agricultural cooperatives by increa
    5·1 answer
  • Major commercial business intelligence (BI) products and services were well established in the early 1970s. Group of answer choi
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!