Vidyalelo
Commerce · Q326

Financial Management

Graduate and Post Graduate · Commerce · question 326

Q326

Method of inventory recording gives lower cost of goods sold in income statement is classified as

A.
last in first out
B.
last out receivable
C.
First out receivable
D.
First in first out
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Method of inventory recording gives lower cost of goods sold in income statement 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.