FIFO provides an up-to-date ending inventory on the balance sheet because it uses the latest purchases to calculate ending inventory.

Name: FIFO provides an up-to-date ending inventory on the balance sheet because it uses the latest purchases to calculate ending inventory.
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FIFO (first-in, first-out) assumes that the first items purchased are the first items sold, leaving the most recent purchases in ending inventory. Therefore, it provides an up-to-date ending inventory value on the balance sheet.

FIFO Provides an Up-To-Date Ending Inventory on the Balance Sheet