3. Which inventory valuation method applies to the LIFO and FIFO cost flow assumptions, respectively? LIFO FIFO A. Lower of Cost or Net Realizable Value Method Lower of Cost or Net Realizable Value Method B. Lower of Cost or Market Method Lower of Cost or Market Method C. Lower of Cost or Market Method Lower of Cost or Net Realizable Value Method D. Lower of Cost or Net Realizable Value Method Lower of Cost or Market Method 4. All else being equal, after applying the lower-of-cost-or-market method, what is the overall effect on net income as well as the accounting equation when inventory is written down? Net Income Total Assets Total Liabilities Total Owners' Equity A. Decrease Decrease Decrease Decrease B No effect No effect No effect No effect C. Decrease No effect No effect No effect D. Decrease Decrease No effect Decrease E. No effect Decrease No effect Decrease 5. When applying the LCM method, the term "market value reflects the amount the company could sell the inventory for in the ordinary course of business, A True B. False Focus