Which Inventory Method Is Better Described as Having a Balance

question 72

Multiple Choice

Which inventory method is better described as having a balance sheet focus and why is it considered as such?

• A)FIFO;better approximates the value of ending inventory.
• B)LIFO;better approximates the value of ending inventory.
• C)LIFO;better approximates inventory cost necessary to generate revenue.

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Definitions:

Creep

The slow, continuous movement of material, such as soil and other weak materials, down a slope.

Prehistoric Slope Failures

Landslides and similar geologic occurrences that took place before recorded history, often detected through sediment analysis.

Hummocky Topography

A type of chaotic landscape characterized by randomly distributed humps and pits, commonly created by a landslide or less commonly by a pyroclastic eruption.

Sedimentary Deposits

Accumulations of mineral and organic particles settled out of water or air, forming distinct layers on the Earth's surface.