Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 62

For the following questions, circle the best response.

When comparing its effects to LIFO during an inflationary time, the effects of FIFO are to

a. decrease net income and decrease total assets.

b. decrease net income and increase total assets.

c. increase net income and decrease total assets.

d. increase net income and increase total assets.