Company a Uses the FIFO Inventory Method and Company B

Multiple Choice

Company A uses the FIFO inventory method and Company B uses the LIFO method.If prices are rising and there are no other significant differences between the companies,which of the following is correct?

A) Company A will report a higher current ratio and lower earnings per share than Company B.
B) Company A will report a higher current ratio and higher earnings per share than Company B.
C) Company A will report a lower current ratio and higher earnings per share than Company B.
D) Company A will report a lower current ratio and lower earnings per shares than Company B.