A LIFO liquidation occurs when ________ fall(s)below the ending inventory quantities in the previous period.

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LIFO stands for "last in, first out," meaning that the last items purchased are assumed to be the first items sold. Therefore, if inventory quantities fall below the ending inventory quantities in the previous period, it means that older inventory items were sold before newer ones, resulting in a LIFO liquidation. This can have accounting and tax implications, as it can artificially increase profits and taxable income in the period of the liquidation.

A LIFO Liquidation Occurs When ________ Fall(s)below the Ending Inventory