If inventories are valued using the LIFO cost flow assumption, they should not be classified as a current asset on the balance sheet.

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Quizplus · Accepted Answer

Inventories valued using LIFO (Last-In-First-Out) cost flow assumption are still classified as a current asset on the balance sheet. Even though the LIFO method assumes that the most recent inventory purchases are the first to be sold, it does not mean that the inventory is not considered a current asset.

If Inventories Are Valued Using the LIFO Cost Flow Assumption