Background: Businesses take inventory of items for sale for several reasons. For income tax reporting. Inventory is needed to calculate cost of goods sold on a business tax form. Inventory costs reduce business income and business taxes.  Inventory checking is the physical verification of the quantities and condition of items held in an inventory or warehouse. This may be done to provide an audit of existing stock. It is also the source of stock discrepancy information.

For discussion, consider the following: 

1. Please explain in your own words what First In First Out and Last in First Out is. 

      1a. Which method can you utilize on QuickBooks?

2. How many inventory items can you enter into QuickBooks Online?

3. In your opinion what type of company would best benefit from tracking inventory on QuickBooks (you can create a fictional company, or you can utilize the Internet to give us an actual company that uses QuickBooks for inventory tracking).

Answer rating: 100% (QA)

QUESTION 1 Please explain in your own words what First In First Out and Last in First Out is What Is the Meaning of First In First Out FIFO First in f... View the full answer