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Which of the Following Combinations of Accounting Practices Will Lead  Depreciation MethodInventory Method \text { Depreciation Method} \quad\quad \text {Inventory Method }

Question 71

Multiple Choice

Which of the following combinations of accounting practices will lead to the highest reported earnings in an inflationary environment?  Depreciation MethodInventory Method \text { Depreciation Method} \quad\quad \text {Inventory Method }
A.  Straight-line  LIFO \text { Straight-line } \quad \quad\quad\quad\quad\quad\text { LIFO }
B.  Double-declining balance  LIFO \text { Double-declining balance } \quad \text { LIFO }
C.  Straight-line FIFO\text { Straight-line} \quad\quad\quad\quad\quad\quad\quad\text { FIFO}
D.  Double-declining balance  FIFO \text { Double-declining balance } \quad \text { FIFO }


A) Option A
B) Option B
C) Option C
D) Option D

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