问

问题如下：

Given in a period of falling prices, a firm reporting under LIFO, compared to FIFO, will have a higher:

选项：

A.

cash in balance sheet

B.

gross profit margin.

C.

cost of goods sold.

解释：

B

Because of falling prices, LIFO COGS will include the cost of lower priced inventory and LIFO COGS will be less than FIFO COGS. So the firm would report a higher profit margin under LIFO than under FIFO, while FIFO inventory will be higher and inventory turnover lower. Higher profit margin under LIFO would result in higher taxes payable, thus lower cash in balance sheet.

考点：LIFO和FIFO

当价格下跌时，LIFO 将导致比 FIFO 更低的 COGS（更高的毛利润）和更高的期末库存。 LIFO 下更高的毛利润将导致更高的应付税款，然后减少现金余额（只要他们缴纳税款）。

而 FIFO 下，期末存货的余额会比LIFO高，存货周转率会比LIFO低。