Assuming Continued Inflation, a Firm That Uses LIFO Will Tend

Multiple Choice

Assuming continued inflation, a firm that uses LIFO will tend to have a(n) ________current ratio than a firm using FIFO, and the difference will tend to __________ as time passes.

A) higher; increase
B) higher; decrease
C) lower; decrease
D) lower; increase
E) identical; remain the same