Question: Explain how LIFO, FIFO, and Weighted average inventory systems will have different affects on a firms income statement and balance sheet. If a firm was

Explain how LIFO, FIFO, and Weighted average inventory systems will have different affects on a firms income statement and balance sheet. If a firm was concerned about reducing their tax burden, which inventory system would best benefit them? Describe a type of business that would use each of the basis of accounting for inventory; LIFO/FIFO/Weighted Average. What is the benefit to each firm?

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