When FIFO and LIFO Are Compared

Multiple Choice

When FIFO and LIFO are compared,

A) LIFO yields a higher net income during inflationary times than FIFO does.
B) FIFO yields a lower balance sheet value for ending inventory than LIFO during periods of inflation.
C) FIFO and LIFO show, respectively, the oldest and newest per-unit inventory costs in the ending inventory on the balance sheet.
D) LIFO is generally perceived to better match current dollars of revenues and expenses, giving a profit figure that better reflects a business's economic reality.
E) FIFO is generally preferred by businesses over LIFO in a period of steadily rising prices from a taxation standpoint.