Proponents of the LIFO Inventory cost flow assumption argue that this costing method is superior to the alternatives because it resultsIn better matching of revenue and expense.Required:a. The recent purchase costs to the Cost of Goods Sold account results in better matching of revenue and expense.O TrueFalseb. What is the impact on the carrying value of Inventory in the balance sheet when LIFO rather than FIFO is used during periods ofInflation?O It understates the value of Inventory in the balance sheet.O It overstates the value of Inventory in the balance sheet.

LIFO is one of the inventory methods used to account for inventory. Here the inventory of the…

Proponents of the LIFO Inventory cost flow assumption argue that this costing method is superior to the alternatives because it results In better matching of revenue and expense. Required: a. The recent purchase costs to the Cost of Goods Sold account results in better matching of revenue and expense. True O False b. What is the impact on the carrying value of Inventory in the balance sheet when LIFO rather than FIFO is used during periods of Inflation? It understates the value of Inventory in the balance sheet. O It overstates the value of Inventory in the balance sheet.

Proponents of the LIFO Inventory cost flow assumption argue that this costing method is superior to the alternatives because it results In better matching of revenue and expense. Required: a. The recent purchase costs to the Cost of Goods Sold account results in better matching of revenue and expense. True O False b. What is the impact on the carrying value of Inventory in the balance sheet when LIFO rather than FIFO is used during periods of Inflation? It understates the value of Inventory in the balance sheet. O It overstates the value of Inventory in the balance sheet.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 9QE

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Similar questions

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