Compared to using the weighted average cost method to account for inventory, during aperiod in which prices are generally rising, the current ratio of a company using the FIFOmethod would most likely be:A. lower.B. higher.C. dependent upon the interaction with accounts payable.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 7PB: Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to...
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Compared to using the weighted average cost method to account for inventory, during a
period in which prices are generally rising, the current ratio of a company using the FIFO
method would most likely be:
A. lower.
B. higher.
C. dependent upon the interaction with accounts payable.

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