Which of the following statements is true with regard to all inventory costing methods?
A) The ending inventory balance and cost of goods sold move in the same direction.
B) The ending inventory balance and the cost of total assets move in the opposite direction.
C) The ending inventory balance and net income move in the same direction.
D) The ending inventory balance and net income move in the opposite direction.

Question

Quizplus · Accepted Answer

The ending inventory balance and net income move in the same direction because higher ending inventory results in lower cost of goods sold, which increases net income, and vice versa.

Which of the Following Statements Is True with Regard to All