- CFA Exams
- CFA Level I Exam
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 25. Inventories
- Subject 4. The LIFO Method
CFA Practice Question
Select the correct statement(s).
I. LIFO reserves must be disclosed in a firm's annual report.
II. For income statement purposes, the more recent costs are matched against the current revenues under the LIFO assumption.
III. During periods of falling input prices, FIFO would underestimate gross profit.
A. I and II
B. I and III
C. All of them
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