In times of rising prices,a company that uses LIFO will report a higher Accounts payable balance than if it had used FIFO.

Name: In times of rising prices,a company that uses LIFO will report a higher Accounts payable balance than if it had used FIFO.
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Question

Quizplus · Accepted Answer

Accounts payable is not directly affected by inventory costing methods like LIFO or FIFO; it reflects the amount the company owes to its suppliers, not how it accounts for the cost of inventory sold.

In Times of Rising Prices,a Company That Uses LIFO Will