The _____ Method of Inventory Valuation Is Based on the Assumption

question 5

Multiple Choice

The _____ method of inventory valuation is based on the assumption that the units purchased first will be sold first.

• A) first-in, first-out (FIFO)
• B) first-in, last-out (FILO)
• C) last-in, first-out (LIFO)
• D) last-in, last-out (LILO)

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Definitions:

Fixed Asset Accounts

Financial accounts that track the purchase, depreciation, and disposal of long-term assets that have a physical form and are used in the operations of a business.