General Electric uses the LIFO inventory cost flow assumption, reporting inventories on its 2008 balance sheet of

Question:

General Electric uses the LIFO inventory cost flow assumption, reporting inventories on its 2008 of $13.7 billion and a LIFO reserve of approximately $706 million. What would be GE’s 2008 inventory balance if it used the FIFO assumption instead? Why is the disclosure of the LIFO reserve useful to financial statement users?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...