The balance in the LIFO reserve account is the difference between the beginning inventory and ending inventory measured using FIFO.

Name: The balance in the LIFO reserve account is the difference between the beginning inventory and ending inventory measured using FIFO.
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Question

Quizplus · Accepted Answer

The LIFO reserve is the difference between the inventory reported using LIFO and FIFO methods, not the difference between beginning and ending inventory.

The Balance in the LIFO Reserve Account Is the Difference