Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-LIFO liquidation
A)Units grouped according to similarities.
B)Captured by FIFO for perishable products.
C)Considered a product cost.
D)Reduces the quality of current period earnings information.
E)Continuously records changes in inventory.

Question

Quizplus · Accepted Answer

LIFO liquidation often results in older, potentially lower-cost inventory being used to value cost of goods sold. This can artificially inflate profits in the short term, thus reducing the quality of current period earnings information.

Listed Below Are 5 Terms Followed by a List of Phrases