Question:
Which of the following accounting practices is most likely to decrease reported earnings in the current period?
A
Using LIFO inventory cost methods during a period of rising prices.
Explaination
LIFO will result in lower net income than FIFO in the current period, during a period of rising prices. The other choices will tend to increase current period earnings
Take more free practice tests for other ASVAB topics with our cfa mock exam now!