The Expression LIFO Stands for

question 20

Multiple Choice

The expression LIFO stands for

• A) LIst FOundation
• B) LInk FOrmation
• C) Last In Front Of
• D) Last In First Out
• E) Long Int Float Object

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Definitions:

Understated

Described or estimated below the actual size, quantity, or importance.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods and the costs of transportation at the point of departure from the seller's shipping dock.

Ending Inventory

At the close of an accounting period, the value of products available for sale is calculated by taking the initial inventory, adding any purchases, and then deducting the cost of goods sold.

Cost Flow Assumption

An accounting method that determines the cost of goods sold and ending inventory valuation, examples include FIFO, LIFO, and weighted average.