An analyst is analyzing two companies in the same industry and believes that they have similar strategies regarding the use of property, plant, and equipment (PP&E). He also thinks that the PP&E assets of the two companies are roughly of the same age and have the same expected useful lives remaining. Company A uses the LIFO method of inventory valuation, and Company B uses the FIFO method. The following additional information is available from the companies' financial statements:In the analyst's opinion, which of the following conclusions is most appropriate? Compared with Company A, Company B: —

单选题 编号：2695577

1. An analyst is analyzing two companies in the same industry and believes that they have similar strategies regarding the use of property, plant, and equipment (PP&E). He also thinks that the PP&E assets of the two companies are roughly of the same age and have the same expected useful lives remaining. Company A uses the LIFO method of inventory valuation, and Company B uses the FIFO method. The following additional information is available from the companies' financial statements:

In the analyst's opinion, which of the following conclusions is most appropriate? Compared with Company A, Company B:

A.Is more liquid.
B.Has a higher quality of earnings.
C.Uses more aggressive accounting estimates related to PP&E.

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