What is the difference between FIFO (first in, first out) andLIFO (last in, first out) accounting?

a) FIFO refers to the practice of firms, when making sales,assuming that the inventory that came in first (at a higher price)is being sold first.

b) During a period of rising prices, LIFO implies that a firm isselling the higher cost, newer inventory first, leaving the lowercost, older inventory on the balance sheet.

c) During a period of falling prices, LIFO implies that a firmis selling the higher cost, newer inventory first, leaving thelower cost, older inventory on the balance sheet.

d) LIFO refers to the practice of firms, when making sales,assuming that the inventory that came in last is being sold first(at a higher price).