FIFO Is the Inventory Costing Method That Follows the Physical

question 181

True/False

FIFO is the inventory costing method that follows the physical flow of the goods.

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Definitions:

Return on Assets

A financial ratio that indicates how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.

Debt/assets Ratio

A financial ratio that compares the total amount of debt a company has to its total assets, indicating how much of the assets are financed by debt.

Current Ratio

Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Net Income

The total profit of a company after deducting all expenses, taxes, and costs from its total revenue.