Q340
A method of inventory recording which produces high inventories in balance sheet is classified as
A.
First out receivable
B.
First in first out
AnswerC.
Last in first out
D.
last out receivable
Answer: Option B
Solution
Answer: Option B
Solution:
A method of inventory recording which produces high inventories in balance sheet is classified as First in first out. First in, first out (FIFO) is an asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first and may be used by an individual or a corporation.