Which of the Following Statements Regarding LIFO Is Incorrect

question 105

Multiple Choice

Which of the following statements regarding LIFO is incorrect?

• A) The last units in are assumed to be the first units sold.
• B) Ending inventory comes from the most recent purchases.
• C) This method leaves the oldest costs in ending inventory.
• D) LIFO is an assumption about how costs flow.

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Definitions:

Soviet Invasion

Refers typically to instances where the Soviet Union forcefully entered a nation, such as the 1968 invasion of Czechoslovakia to suppress the Prague Spring reforms.

Czechoslovakia

A former country in Central Europe that existed from 1918 to 1992, before peacefully splitting into the Czech Republic and Slovakia.

American Planes

Refers to aircraft manufactured in the United States, often highlighting their role in military and civilian aviation history.

World War II

A global military conflict that took place from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.