问题
单项选择题
If all else holds constant in periods of rising prices and inventory levels:（）
A. FIFO firms have higher debt to equity ratios than LIFO firms do.
B. FIFO firms will have greater stockholder’s equity than LIFO finns do.
C. LIFO firms have higher gross profit margins than FIFO firms do.
答案
参考答案：B
解析：
The FIFO method of inventory accounting assigns the cost of the earliest units acquired to goods transferred out and the cost of most recent acquisitions to ending inventory. When prices are rising, the cheaper goods in beginning inventory reflecting earlier purchases are assigned to COGS (hence, higher income and higher shareholder’ s equity through retained earnings. )
