[amp_mcq option1=”First out receivable” option2=”First in first out” option3=”Last in first out” option4=”last out receivable” correct=”option3″]<\/p>\n
The correct answer is C. Last in first out (LIFO).<\/p>\n
LIFO is a method of inventory accounting in which the cost of goods sold is based on the cost of the goods that were purchased last. This means that the most recent costs are used to calculate the cost of goods sold, and the oldest costs are left in inventory. This can result in a higher inventory balance on the balance sheet, as the cost of goods sold is lower.<\/p>\n
First in first out (FIFO) is a method of inventory accounting in which the cost of goods sold is based on the cost of the goods that were purchased first. This means that the oldest costs are used to calculate the cost of goods sold, and the most recent costs are left in inventory. This can result in a lower inventory balance on the balance sheet, as the cost of goods sold is higher.<\/p>\n
First out receivable is not a method of inventory accounting.<\/p>\n
Last out receivable is not a method of inventory accounting.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”First out receivable” option2=”First in first out” option3=”Last in first out” option4=”last out receivable” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-52930","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n