问题
单项选择题
A last in, first out (LIFO) liquidation in an environment of rising prices will NOT do which of the following
A．
| A. Increase gross income. |
B．
| B. Increase taxable income. |
C．
| C. Increase cost of goods sold (COGS). |
答案
参考答案：C
解析：In a LIFO liquidation, a firm allows inventory to decrease so that it is using lower-cost materials (purchased in the past). This will lower the COGS and increase income, profit, and taxes. This is one of the ways that a firm' s management can manipulate earnings.