Which of the Following Statements About the Last-In,first-Out (LIFO)assumption Is

Multiple Choice

Which of the following statements about the last-in,first-out (LIFO) assumption is true?

A) LIFO assumes that inventory on hand consists of the oldest units.
B) LIFO assumes that ending inventory and cost of goods sold are composed of a mixture of old and new units.
C) LIFO results in newer costs appearing in the balance sheet.
D) LIFO assumes the items sold are those purchased first.