Q28. Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. If both inventory prices and inventory quantities for a company are increasing, which of the following inventory accounting methods results in the
Most informative income statement
Inventory balance sheet amount alosest to economic valus?
As long as inventory quantities are stable or increasing, the LIFO method provides the best matching of revenue and cost; the FIFO method better reflects current inventory costs for balance sheet purposes.
发表于 2007-10-24 19:17
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