Which of the following statements is correct when inventory prices are increasing?
A)LIFO's ending inventory will be the largest among the inventory costing methods.
B)FIFO's gross profit will be the lowest among the inventory costing methods.
C)Inventory turnover will be the largest when the LIFO inventory method is used.
D)Use of the LIFO method will result in lower cash flows due to an increased cost of goods sold.

Question

Quizplus · Accepted Answer

LIFO has the largest cost of goods sold and the lowest ending inventory and therefore the largest inventory turnover ratio.

Which of the Following Statements Is Correct When Inventory Prices