If a company values its stock in the period of rising pri...
If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to?
Have a higher cost of goods sold
Have a higher gross profit
Pay higher gross profit
Have a higher value for closing stock
Correct answer is A
During periods of inflation (rise in prices), the use of LIFO will result in the highest estimate of cost of goods sold among the three approaches, and the lowest net income.
\(\begin{array}{c|c} & N \\ \hline sales & 45,000 \\ \text{Opening stock} & 20,000 \\ \t...
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