QUESTION 25

1. In periods of falling prices, which of the following will be true, other things held constant?

a.

A company would yield the same financial performance regardless of costing method used.

b.

A firm reporting using LIFO would have the strongest operating cash flows.

c.

An entity using LIFO would reflect the highest net-working capital.

QUESTION 25

1. In periods of falling prices, which of the following will be true, other things held constant?

	a.	A company would yield the same financial performance regardless of costing method used.
	b.	A firm reporting using LIFO would have the strongest operating cash flows.
	c.	An entity using LIFO would reflect the highest net-working capital.