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Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income tax is paid. b. Conservative income statements and balance sheet disclosures result from falling prices. c. Record keeping and financial statement preparation are easier. d. In periods of rising prices, more holding gains are reported in net income.

Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income tax is paid. b. Conservative income statements and balance sheet disclosures result from falling prices. c. Record keeping and financial statement preparation are easier. d. In periods of rising prices, more holding gains are reported in net income.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income tax is paid. b. Conservative income statements and balance sheet disclosures result from falling prices. c. Record keeping and financial statement preparation are easier. d. In periods of rising prices, more holding gains are reported in net income.
Transcribed Image Text:Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income tax is paid. b. Conservative income statements and balance sheet disclosures result from falling prices. c. Record keeping and financial statement preparation are easier. d. In periods of rising prices, more holding gains are reported in net income.
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