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Basic Question 10 of 16
When price levels have been increasing throughout a period, a company using the LIFO inventory valuation method instead of the FIFO inventory valuation method would have ______.
B. lower net income
C. higher net income
A. higher equities
B. lower net income
C. higher net income
User Contributed Comments 1
| User | Comment |
|---|---|
| teddajr | LIFO -> Low NI -> Low tax -> High CF |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
calculate and explain how inflation and deflation of inventory costs affect the financial statements and ratios of companies that use different inventory valuation methods
CFA® 2025 Level I Curriculum, Volume 2, Module 6.