Which one of the following statements is false?
A) Under conditions of rising prices, the LIFO method results in lower income than the FIFO method.
B) In most cases, the FIFO method approximates the physical flow of items in inventory.
C) The LIFO method produces a higher ending inventory value than the FIFO method.
D) The FIFO method includes holding gains in income.

Question

Quizplus · Accepted Answer

The LIFO (Last In, First Out) method, under conditions of rising prices, results in a lower ending inventory value compared to the FIFO (First In, First Out) method. This is because LIFO assumes that the most recently acquired items are sold first, leaving older, typically cheaper items in inventory.

Which One of the Following Statements Is False