alleryStart learning →The gap between FIFO and LIFO inventory values is called the
AThe LIFO reserve
BThe FIFO surplus
CRevaluation reserve
DStock provision fund
Answer & Solution
Correct answer: A. The LIFO reserve
The difference between inventory under FIFO and under LIFO is known as the LIFO reserve.
Keep practising Inventories
Browse all Inventories questions for CA Foundation, or explore more Accounting topics.
Related questions
Land held for resale by a dealer is classified asWhich items count as inventories held as materials or supplies?Stock on 5 April is 2,40,000; April 1-5 sales 50,000 at 25% on cost, purchases 15,000. StoWhich three heads make up the cost of inventories?Costs of conversion include costs directly related to units, such asThe cost of inventories may be unrecoverable if stock isWhich inventory method most closely mimics the physical flow of goods?Opening stock 40,000; purchases 1,60,000; sales 2,00,000; gross profit 25% of sales. Closi