Of the Three Cost-Flow Assumptions, When Prices Rise FIFO Results

Multiple Choice

Of the three cost-flow assumptions, when prices rise FIFO results in balance sheet figures that are _____, cost of goods sold will _____, and _____ reported net income

A) closest to current cost, be out of date, highest
B) out of date, closest to current cost, highest
C) closest to current cost, be out of date, lowest
D) out of date, closest to current cost, lowest
E) closest to current cost, closest to current cost, highest