What is the difference between FIFO $|$first in$,$ first outh and LIFO llast in$,$ first out$)$ accounting?

FIFO refers to the practice of firms, when making sales, assuming thst the irventary that came in first $($at a higher pricel is being sold first.

During a period of risine prikes, LIFO implies that a firm is selling the higher cost, newer inventary first, ledving the lower cost, older inventory on the balance stseet.

During a period of falling prices. UFO implies that a firm is selling the higher cost, nower inventery first, leaving the lower cost.older inventory on the balance sheet.

LIFO refers to the practice of firms, when making sales, assuming that the inwentory that came in last is being sold first lat a higher pricel.