Consistent with Positive Accounting Theory,an Entity Close to Breaching Their

Multiple Choice

Consistent with positive accounting theory,an entity close to breaching their debt covenant will:

A) prefer LIFO method over FIFO method.
B) prefer FIFO method over LIFO method.
C) prefer weighted average method over FIFO method.
D) prefer moving average method over FIFO method.
E) None of the given answers.