Asked by

Celine Balgobin
on Nov 12, 2024

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During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory?

A) average cost method
B) LIFO method
C) FIFO method
D) cannot tell without more information

Falling Prices

A situation where the general level of prices of goods and services in an economy is decreasing over time.

Balance Sheet

A financial statement that lists assets, liabilities, and equity of a company at a specific point in time, showing its financial position.

Inventory Methods

Techniques used to determine the cost of goods sold and ending inventory value, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost.

  • Examine the impact of increasing and decreasing prices on the valuation of inventory and the profitability of a company.
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WK
Wi-Fi KanhuNov 17, 2024
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