During a period of falling prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory.
A) average method
B) LIFO method
C) FIFO method
D) can not tell without more information

Question

Quizplus · Accepted Answer

During a period of falling prices, the FIFO (First-In, First-Out) method results in the lowest balance sheet amount for inventory because it assumes that the oldest, higher-cost inventory is sold first, leaving the newer, lower-cost inventory on the balance sheet.

During a Period of Falling Prices, Which of the Following