CPA Exam Practice Questions | Inventory FIFO LIFO | Intermediate Accounting 

In this video, I discuss CPA exam practice questions. CPA candidates need to practice CPA exam questions in order to succeed on the CPA exam. ON my website, www.farhatlectires.com, you will find plenty of CPA exam practice questions.
Are you a CPA candidate or accounting student? Check my website for additional resources such exam questions and notes:farhatlectures...
Connect with me on LinkedIn:
/ professorfarhat
Instagram Account: @farhatlectures
Facebook: @accountinglectures
Twitter: @farhatlectures
Email: Mansour.farhat@gmail.com
#CPAEXAM #intermediateaccounting#accountingstudent
The Last-In, First-Out (LIFO) method assumes that the last unit to arrive in inventory or more recent is sold first.
The First-In, First-Out (FIFO) method assumes that the oldest unit of inventory is the sold first.
LIFO is not realistic for many companies because they would not leave their older inventory sitting idle in stock.
FIFO is the most logical choice since companies typically use their oldest inventory first in the production of their goods.