A LIFO Inventory Liquidation Occurs When a Company That Uses

Multiple Choice

A LIFO inventory liquidation occurs when a company that uses the LIFO inventory costing method

A) buys more merchandise during the accounting period than it sells.
B) cannot determine the ending inventory because it has been destroyed or stolen.
C) changes its inventory method from FIFO to LIFO.
D) sells more merchandise during the accounting period than it purchased.