Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 6 - Reporting and Analyzing Inventory - Questions: 23


LIFO reserve is the difference between inventory reported using LIFO and inventory using FIFO.

Work Step by Step

Ignoring a large LIFO reserve will clearly distort any comparison analysts may try to make with competitors or previous year figures.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.