An Advantage to the LIFO Method of Accounting for Inventory

question 34

True/False

An advantage to the LIFO method of accounting for inventory is that it values the cost of goods sold at current replacement costs.

---

Definitions:

Accounts Payable Period

This is the average number of days it takes for a business to pay its invoices from suppliers and vendors, indicating the efficiency of its payables management.

Letter Of Credit

A financial document issued by a bank guaranteeing a buyer's payment to a seller within a specified timeframe.

Written Statement

A document that records the details of a declaration or an agreement in writing.