Explain Two Methods of Discovery

question 14

Essay

Explain two methods of discovery.

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Definitions:

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold.

Balance Sheet

The balance sheet is a financial statement that shows a company’s financial position by detailing its assets, liabilities, and shareholders' equity at a specific point in time.

LIFO

Last-In, First-Out, an inventory valuation method where the goods purchased last are the first to be sold.

Inventory Costing Method

An accounting approach used to value inventory, determining the cost of goods sold and ending inventory balances; common methods include LIFO, FIFO, and weighted average cost.