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Current Ratio Distortion Under LIFO Inventory Costing May Be Adjusted

Question 36

Multiple Choice

Current ratio distortion under LIFO inventory costing may be adjusted by


A) adding the LIFO reserve to current assets.
B) subtracting the LIFO reserve from current assets.
C) adding the LIFO reserve to current liabilities.
D) subtracting the LIFO reserve from current liabilities.

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