Question

In periods of deflation, what will lifo produce? lower total assets than fifo lower revenue than fifo the same retained earnings as fifo higher net income than fifo higher expenses than fifo

Answer 1

In periods of deflation, will lifo will produce higher net income than fifo.
FIFO is a short of the term "first in, first out," and LIFO is a contraction of the term "last in, first out". FIFO means that the goods which are added to inventory at first are expected to be the first goods removed from inventory for sale and LIFO means that the goods which are added at last are expected to be the first goods that are removed from the inventory for sale.