ACC 206 Week 3 DQ LIFO vs. FIFO - LIFO vs FIFO ACC 205 Week 3 DQ LIFO vs FIFO LIFO vs FIFO Fifo and Lifo FIFO and LIFO Accounting Implications of

ACC 206 Week 3 DQ LIFO vs. FIFO - LIFO vs FIFO ACC 205 Week...

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LIFO vs. FIFO ACC 205 Week 3 DQ LIFO vs. FIFO
LIFO vs. FIFO Fifo and Lifo FIFO and LIFO Accounting Implications of Valuing Inventory under FIFO and LIFO LIFO and FIFO Inventory Accounting Methods The two most common methods of inventory accounting are Last-in-first- out (LIFO), and first-in –first out (FIFO), choosing the correct method of inventory accounting could be detrimental to the income statement and the statement of cash flow, and also it would affect the balance sheet of the company. For a company, it is imperative that they track their inventories and cost of goods sold. Both of these methods of accounting are a way they could do this. LIFO and FIFO are methods used for accounting for the inventory. I will discuss these two different methods. FIFO FIFO is a method that companies use whose inventories are like food or an item that could turn bad if not sold quickly. A company using FIFO

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