Which inventory cost flow assumption emphasizes the balance sheet as opposed to the income statement?
A)LIFO method
B)FIFO method
C)weighted-average method
D)acquisition cost
E)specific identification method

Question

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) method emphasizes the balance sheet because it assumes that the oldest inventory items are sold first, leaving the most recent costs in ending inventory, which is reported on the balance sheet.

Which Inventory Cost Flow Assumption Emphasizes the Balance Sheet as Opposed