When costs to purchase inventory are rising using LIFO leads

When costs to purchase inventory are rising, using LIFO leads to reporting a ______ than FIFO.

lower value for inventory on the balance sheet

higher value for inventory on the balance sheet

lower value for inventory on the income statement

higher value for inventory on the income statement

Solution

When costs to purchase inventory are rising, using LIFO leads to reporting a lower value for inventory on the balance sheet than FIFO.