Which of the following statements is correct?
A)FIFO reports lower income amounts than LIFO when prices are increasing.
B)LIFO reports a higher income amount than FIFO when prices are increasing.
C)LIFO reports a higher income amount than FIFO when prices are decreasing.
D)LIFO reports the same amount of income as FIFO when prices are increasing.

Question

Quizplus · Accepted Answer

LIFO reports a lower cost of goods sold and a higher net income when prices are decreasing.

Which of the Following Statements Is Correct