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2 years ago

Contrast the effects of LIFO versus FIFO on reported assets (i.e., the ending inventory) when

1 answer:

ozzi2 years ago

5 0

LIFO and FIFO have opposite effects on the amount of inventory shown on the asset side of the balance sheet. Ending inventory is based on either the oldest unit price or the latest unit price, depending on the method used.

FIFO the ending inventory is calculated with the latest unit price, with LIFO the ending inventory is calculated with the oldest unit price. Therefore, when the price increases, the ending inventory reported on the balance sheet will be higher for his FIFO than for LIFO.

Conversely, if the price is falling, the closing inventory on the balance sheet will be higher in his LIFO than in FIFO.

Learn more about FIFO and LIFO brainly.com/question/13510592

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3 years ago

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Answer:

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3 years ago

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3 years ago

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weeeeeb [17]

Answer:

The correct answer is C. the decline in the economic value of an asset over time

Explanation:

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