5. In periods of rising prices, the inventory method which results in the inventory value on the balance sheet that is closest to current cost is the: a. FIFO method b. LIFO method. c. average-cost method. d. tax method. 6. An overstatement of ending inventory in one period results in a. no effect on net income of the next period. b. an overstatement of net income of the next period. c. an understatement of net income of the next period. d. an overstatement of the ending inventory of the next period. 7. The Allowance for Doubtful Accounts is necessary because a. when recording uncollectible accounts expense, it is not possible to know which specific accounts will not pay. b. uncollectible accounts that are written off must be accumulated in a separate account. liability results when a credit sale is made. d. management needs to accumulate all the credit losses over the years. a C