Question 8

Which of the following statements is correct when inventory unit costs are increasing?

LIFO will result in higher net income and lower inventory valuation than will FIFO

LIFO will result in lower net income and a higher inventory valuation than will FIFO

FIFO will result in lower net income and a lower inventory valuation than will LIFO

FIFO will result in higher net income and a higher inventory valuation than will LIFO