During a period of rising prices, which inventory method might be expected to give the highest net...

Question

During a period of rising prices, which inventory method might be expected to give the highest net income?
a. Weighted-average.
b. FIFO.
c. LIFO.
d. Specific identification.
e. Cannot determine.

David · Accepted Answer

During a period of rising prices, which inventory method might be expected to 
give the highest net income? 
a. Weighted-average. 
b. FIFO. 
c. LIFO. 
d. Specific identification. 
e. Cannot determine.
Solution; 
b. FIFO.
 FIFO method is also called as First in First out method. This method assumes that 
stock purchased first is sold first.

During a period of rising prices, which inventory method might be expected to give the highest net income? a. Weighted-average. b. FIFO. c. LIFO. d. Specific identification. e. Cannot determine.

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