Of the three cost-flow assumptions, when prices fall FIFO results in balance sheet figures that are _____, cost of goods sold will _____, and _____ reported net income
A)closest to current cost, be out of date, highest
B)out of date, closest to current cost, highest
C)closest to current cost, be out of date, lowest
D)out of date, closest to current cost, lowest
E)closest to current cost, closest to current cost, highest

Question

Quizplus · Accepted Answer

FIFO results in balance sheet figures that are closest to current cost, cost of goods sold will be out of date, and lowest reported net income.

Of the Three Cost-Flow Assumptions, When Prices Fall FIFO Results