LIFO stands for__________?

Correct answer: D. Last in, First Out

  • A. Lots in , Few out
  • B. Link input, Format Output
  • C. Last input, First Output
  • D. Last in, First Out

Explanation

LIFO means Last in, First Out, so the most recently purchased inventory is assumed to be sold first. The phrase “Last input, First Output” is not the standard accounting term.

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Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.

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