参考答案：C

解析：

During periods of rising prices if the inventory method is switched from FIFO to LIFO the current ratio will decrease because with LIFO the less expensive inventory is left over because the more expensive latest purchased inventory is shipped out first. With FIFO during rising prices the later purchased more expensive inventory would be left because the less expensive inventory which was purchased first would be shipped out first. The current ratio is (Current Assets)/(Current Liabilities) with inventory being part of CA. If we switched to LIFO, which leaves the less expensive purchases in inventory, CA will decrease and hence CA/CL will also decrease. Net income (NI) is affected because switching from FIFO to LIFO during periods of changing prices will change cost of goods sold (COGS) thus affecting NI. During periods of rising prices a change from FIFO to LIFO will increase COGS and thus lower NI resulting in lower taxes and higher cash flows.