CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

A LIFO liquidation occurs when ______
A. goods in inventory are damaged and have to be liquidated.
B. the prices of the goods in inventory are increasing.
C. more goods are sold during the period than are purchased.
Explanation: A LIFO liquidation is a decrease in the level of inventory from the beginning of the period to the end of the period. This will occur when there are more units of inventory sold than were purchased.

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