When prices remain the same, which cost flow assumption would generally measure the largest current ratio?

Name: When prices remain the same, which cost flow assumption would generally measure the largest current ratio?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When prices remain constant, all cost flow assumptions (FIFO, LIFO, Average) would result in the same cost of goods sold, ending inventory, and therefore, the same current ratio. The current ratio is unaffected by the cost flow assumption under constant prices.

When Prices Remain the Same, Which Cost Flow Assumption Would