With inflation,a LIFO liquidation will
A)decrease net income.
B)increase cost of goods sold.
C)increase gross profit.
D)increase inventory.
E)increase the current ratio.

Name: With inflation,a LIFO liquidation will A)decrease net income. B)increase cost of goods sold. C)increase gross profit. D)increase inventory. E)increase the current ratio.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

A LIFO liquidation occurs when older, lower-cost inventory is sold, leading to lower cost of goods sold and higher gross profit.

With Inflation,a LIFO Liquidation Will