[求助]about inventory FIFO and LIFO

crabgdd

If all else holds constant in periods of rising prices and inventory levels, FIFO firms have higher debt-to-equity ratios than LIFO firms. It's right?

Notes book3 上的题

barryx

wrong.

equity of FIFO is higher compared to LIFO when price is rising, hence leads to a lower debt-to-equity ratio