Assuming rising costs,the switch from LIFO to FIFO or average cost would most likely have what effect(s)?
A)Increase reported net income in the income statement.
B)Decrease tax obligations to the Internal Revenue Service (IRS).
C)Increase reported net income and tax obligations.
D)Decrease reported net income and tax obligations.

Question

Quizplus · Accepted Answer

The Answer of Assuming rising costs,the switch from LIFO to FIFO or average cost would most likely have what effect(s)?
A)Increase reported net income in the income statement.
B)Decrease tax obligations to the Internal Revenue Service (IRS).
C)Increase reported net income and tax obligations.
D)Decrease reported net income and tax obligations.

Assuming Rising Costs,the Switch from LIFO to FIFO or Average