MCQ
Single Best Answer
Easy
QIs LIFO/FIFO a method of:
ID: #24245
Elements of Accounting
54 views
Question Info
#24245Q ID
EasyDifficulty
Elements of AccountingTopic
Your Answer
Choose the Best Option
Click any option to instantly check if you're correct.
Correct Answer: Option A
Explanation
The correct answer is:
A. Inventory Evaluation ✅
👉 Explanation:
-
LIFO (Last In, First Out) and FIFO (First In, First Out) are inventory valuation methods.
-
They determine how the cost of inventory sold (COGS) and ending inventory are calculated.
-
FIFO assumes the oldest inventory is sold first.
-
LIFO assumes the newest inventory is sold first.
-
-
They affect reported profits and inventory values but are not related to profit ratios or financing.
💡 Key point: These methods help businesses match costs with revenues and comply with accounting standards.
Continue Practice
Share
Share This Question
Challenge a friend or share with your study group.
More from This Topic