alleryStart learning →Over the whole life of a business, FIFO, LIFO or average cost changes only the
ATotal lifetime profit
BTiming of profit and stock
CTotal cash received
DNumber of sales made
Answer & Solution
Correct answer: B. Timing of profit and stock
Total lifetime profit is identical under all methods; they differ in when profit is recognised.
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Related questions
Net income is also calledCharging depreciation on fixed assets has what effect on net profit?Rs 36,000 rent for 12 months is received on 1 January. At the 31 March year end, unearned Investment interest of Rs 12,000 a year is received for nine months only. Accrued income aMachine costing Rs 2,00,000 is bought on 1 October; depreciation 15% a year on cost, year Current assets are Rs 4,80,000 and current liabilities Rs 3,10,000. Net current assets arePurchases Rs 4,00,000, purchase returns Rs 25,000, carriage inwards Rs 5,000. Net cost of Gross sales Rs 6,40,000 and sales returns Rs 15,000. Net sales are