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Which inventory valuation method assumes the earliest goods purchased are sold first?

  1. A LIFO
  2. B FIFO
  3. C Weighted average cost
  4. D Specific identification
Answer

FIFO

FIFO assigns the oldest costs to cost of goods sold, leaving the most recent costs in closing inventory. Under Ind AS and IFRS, LIFO is not permitted.

All Accounting MCQs

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