CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Comparing with FIFO, LIFO results in (during periods of rising prices) ______.
A. higher taxes and lower cash flows
B. lower taxes and higher cash flows
C. lower taxes and lower cash flows

User Contributed Comments 4

User Comment
poomie83 higher cashflows as less taxes are paid
meeravenk Oh ... for a sec there I thought I lost it ... thanks poomie
maria15 I got this wrong at first...I thought that you have lower tax because you have lower cash flows to begin with.
bablig Tax will be compted on income nd not on cash flows.
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