Matori

The difference never of current ratio will not decreae because LIFO and FIFO react in an oppposite way under rising price or declining price.
So if the price rises, the differrence between the two firm current ration will rise(in absolute term): LIFO FIFO increase but the difference is a positive number
Now if the price declines LIFOFIFO will continue to increase but the difference is a negative number.(considering that we are talking about the long run)
In conclusion, in absolute termn,under rising of falling prices, the difference of current ration between LIFO and FIFO will rise
ANSWERS IS: C
PSin the short run the correct answer would have been A)