Day: November 3, 2021

In a period of rising prices, a company has valued its stock of goods using the Last In, First Out (LIFO) basis.

The directors have decided that the stock should be valued using the First In, First Out (FIFO) basis.

What is the effect of the change in the valuation of the stock on the gross and net profits of the company?

Select ONE answer:

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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