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Which of the following are expected consequences of selecting the FIFO method of inventory accounting during periods of increasing prices (costs)? Select all that apply.

Which of the following are expected consequences of selecting the FIFO method of inventory accounting during periods of increasing prices (costs)?

Select all that apply.

  • Higher reported net income than the LIFO method

  • Lower reported net income than the LIFO method

  • Higher ending inventory on the balance sheet than the LIFO method

  • Lower ending inventory on the balance sheet than the LIFO method

  • The method chosen will have no effect on reported financial outcomes

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