__________ is a false statement.
A)During periods of inflation, LIFO makes the balance sheet less representative of the actual inventory values than if FIFO were used
B)During periods of inflation, FIFO makes the balance sheet less representative of actual inventory values than if LIFO were used
C)During periods of inflation, LIFO overstates earnings relative to FIFO
D)During periods of inflation, FIFO makes the balance sheet less representative of actual inventory values than if LIFO were used and LIFO overstates earnings relative to FIFO
E)None of the options

Question

Quizplus · Accepted Answer

During periods of inflation, the use of LIFO results in lower priced inventory remaining in stock; thus the balance sheet understates the actual inventory values.

__________ Is a False Statement