NO.PZ202308140300007710
问题如下：
Q. In a period of declining inventory unit costs and constant or increasing inventory quantities, which inventory method is most likely to result in a higher debt-to-equity ratio?选项：
A.LIFO B.FIFO C.Weighted average cost解释：
B is correct. In an environment of declining inventory unit costs and constant or increasing inventory quantities, FIFO (in comparison with weighted average cost or LIFO) will have higher cost of goods sold and lower net income and inventory. Because both inventory and net income are lower, total equity is lower, resulting in a higher debt-to-equity ratio.
如题
