In an Inflationary Environment

Multiple Choice

In an inflationary environment,

A) a company's net income will be higher if it uses FIFO than if it uses LIFO.
B) a company's cost of goods sold will be lower if it uses LIFO as opposed to FIFO.
C) a company's net income will be the same regardless of whether LIFO or FIFO is used.
D) a company's assets will be lower if it uses FIFO as opposed to LIFO cost flow.