问题
单项选择题
For balance sheet purposes, inventories based on: （）
A. LIFO are preferable to those based on FIFO, as they more closely reflect the current costs.
B. weighted average are preferable to those based on FIFO, as they more closely reflect the current costs.
C. FIFO are preferable to those based on LIFO, as they more closely reflect current costs.
答案
参考答案：C
解析：
The inventories based on FIFO are preferable to those presented under LIFO or average cost for balance sheet purposes. Under FIFO, the older inventories are taken out first, and the ending inventory balance consists of the recent purchases and thus most closely reflect the current (economic) value.