CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Under which cost flow assumption is the ending inventory composed of the earliest purchased merchandise?

A. FIFO
B. LIFO
C. Average Cost
Correct Answer: B

Under the LIFO (Last-In, First-Out) cost flow assumption, inventory is sold from the most recent purchases, leaving the earliest purchased inventory on hand.

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