Which of the Following Combinations of Accounting Practices Will Lead

Multiple Choice

Which of the following combinations of accounting practices will lead to the highest reported earnings in an inflationary environment? $$\begin{array} { | l | l | c | } \hline & { \text { Depreciation Method } } & \text { Inventory Method } \\\hline \text { A) } & \text { Straight-line } & \text { LIFO } \\\hline \text { B) } & \text { Double-declining balance } & \text { LIFO } \\\hline \text { C) } & \text { Straight-line } & \text { FIFO } \\\hline \text { D) } & \text { Double-declining balance } & \text { FIFO } \\\hline\end{array}$$

A) Choice A
B) Choice B
C) Choice C
D) Choice D