The LIFO method of accounting for inventory is primarily a U.S. invention. Many countries around the world

Question:

The LIFO method of accounting for inventory is primarily a U.S. invention. Many countries around the world will not allow LIFO to be used, and other countries discourage its use. Why do you think other countries have such an unfavorable opinion of LIFO? Think about these issues: In periods of rising prices, does the amount shown on the relating to inventory reflect current cost? If a company’s inventory on the reflected costs from years past, what would happen to the income statement if those inventory costs were suddenly moved to Cost of Goods Sold? Would the result reflect a firm’s actual performance?

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...