In periods of rising prices, use of LIFO rather than the FIFO inventory method will most likely have what effect on the following items?
$\begin{array}{ccc}&\text { Net Income }& \text {Cost of Goods Sold} &\text { Working Capital }\\end{array}$
A)$\begin{array}{ccc} &\text { Higher} &&&&&\text { Lower} &&&&\text { Lower} \\end{array}$
B)$\begin{array}{ccc}&\text { Lower }&&&&\text { Higher} &&&&&\text { Lower} \\end{array}$
C)$\begin{array}{ccc} &\text { Higher }&&&&\text { Higher} &&&&& \text {Higher }\\end{array}$
D)$\begin{array}{ccc} & \text {Lower }& &&&\text {Higher} &&&&& \text {Higher} \ \end{array}$

Question

In periods of rising prices, use of LIFO rather than the FIFO inventory method will most likely have what effect on the following items? 
$\begin{array}{ccc}&\text { Net Income }& \text {Cost of Goods Sold} &\text { Working Capital }\\end{array}$
A)$\begin{array}{ccc} &\text { Higher} &&&&&\text { Lower} &&&&\text { Lower} \\end{array}$ 
B)$\begin{array}{ccc}&\text { Lower }&&&&\text { Higher} &&&&&\text { Lower} \\end{array}$ 
C)$\begin{array}{ccc} &\text { Higher }&&&&\text { Higher} &&&&& \text {Higher }\\end{array}$ 
D)$\begin{array}{ccc} & \text {Lower }& &&&\text {Higher} &&&&& \text {Higher} \ \end{array}$

Quizplus · Accepted Answer

The Answer of In periods of rising prices, use of LIFO rather than the FIFO inventory method will most likely have what effect on the following items? 
$\begin{array}{ccc}&\text { Net Income }& \text {Cost of Goods Sold} &\text { Working Capital }\\end{array}$
A)$\begin{array}{ccc} &\text { Higher} &&&&&\text { Lower} &&&&\text { Lower} \\end{array}$ 
B)$\begin{array}{ccc}&\text { Lower }&&&&\text { Higher} &&&&&\text { Lower} \\end{array}$ 
C)$\begin{array}{ccc} &\text { Higher }&&&&\text { Higher} &&&&& \text {Higher }\\end{array}$ 
D)$\begin{array}{ccc} & \text {Lower }& &&&\text {Higher} &&&&& \text {Higher} \ \end{array}$

In Periods of Rising Prices, Use of LIFO Rather Than Net Income Cost of Goods Sold Working Capital \begin{array}{ccc}&\text { Net Income }& \text {Cost of Goods Sold} &\text { Working Capital }\\\end{array}​ Net Income ​Cost of Goods Sold​ Working Capital ​

In Periods of Rising Prices, Use of LIFO Rather Than $\begin{array}{ccc}&\text { Net Income }& \text {Cost of Goods Sold} &\text { Working Capital }\\\end{array}$