Question

In a period of rising prices and stable inventory quantities, which of the following best describes the effect on gross profit of using LIFO as compared to FIFO?

Q: Answer-In a period of rising prices and stable inventory quantities, which of the following best describes...

Compared to FIFO, Cost of goods sold under LIFO will be higher because the most recent higher costs units are assumed to be the first units sold. Higher COGS under LIFO will result in lower gross profit revenue cost of goods sold

A Lower

B Higher

C The same

D Can’t say

E None of the above

Practice Next

More Basic Accounting Concepts Questions

A company shows the following (₹ crore): Equity 60, Reserves 40, Term Loan 120, Current Liabilities 80, Fixed Assets 180, Current Assets 120. What is the...
A company shows Net Profit of ₹12 crore, Depreciation ₹8 crore, Increase in Receivables ₹10 crore and Increase in Payables ₹4 crore. What is the Net Cash f...
As per which concept, total Notional profit should not be transferred to Profit and Loss Accounts but the portion of it should be kept in reserve to meet a...
Consider the following and select which of them forms a part of capital receipts for the GoI I. Loans raised by Government from RBI and public ...
An account classified as Sub-standard has accrued interest of ₹1.2 crore during the year, which has not been actually received. How should this interest be...
Interest paid on Debentures will come in which of the following activities in the Cash Flow Statement?
Match the following: Term Feature A. CDO 1) Pooled cash-flows sold to investors in discreet tranches B. FPO 2) Trade witho...
A borrower has good past track record, moderate leverage, but current industry is in cyclical downturn and cash flows are under stress for next 12 months. ...
A term loan of ₹80 crore is secured by Plant & Machinery valued at ₹90 crore and land valued at ₹30 crore. The forced sale value of machinery is assessed a...
A company has Sales ₹400 crore, EBITDA ₹60 crore, Interest ₹20 crore, Depreciation ₹15 crore, Tax ₹5 crore. What is the Cash Profit and Interest Coverage R...

Relevant for Exams:

Hey! Ask a query

🎓

Think You're Ready for RBI Grade B?

RBI Grade B 2026 Phase 1 Memory Based Paper

200 Questions with Detailed Solutions
Section-wise Coverage (GA, English, Quant & Reasoning)

Download Now 100% Free PDF

In a period of rising prices and stable inventory quantities, which of the following best describes the effect on gross profit of using LIFO as compared to FIFO?

Detailed Solution

More Basic Accounting Concepts Questions

Relevant for Exams:

Hey! Ask a query

Please Register/Login

RBI Grade B 2026 Phase 1 Memory Based Paper