General Electric uses the LIFO inventory cost flow assumption, reporting inventories on its 2014 balance sheet of
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General Electric uses the LIFO inventory cost flow assumption, reporting inventories on its 2014 balance sheet of $17.6 billion and a LIFO reserve of approximately $62 million. What would be GE’s 2014 inventory balance if it used the FIFO assumption instead? Why is the disclosure of the LIFO reserve useful to financial statement users?
Balance SheetBalance 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...
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