Learn what inventory accounting is, how it works, and key methods like FIFO, LIFO, and WAC. Includes real-world examples, tips, and best practices.

By NORMAN G. GRILL, CPA, and JOHN SHORTSLEEVE, CPA The accounting method your business uses to report income for tax ...

The FIFO inventory method assigns the cost of the oldest inventory to the most recent sales. Suppose that at the start of January a toymaker has 100 dolls for which it paid $1,000 ($10 per doll).

Global research and advisory firm Info-Tech Research Group has published new research insights to help retailers leverage AI ...

Excess inventory becomes an accounting problem when it means products can't be sold at the expected price. A company may have to take a write-down if it anticipates needing to reduce the price to ...

Equity accounting is a method of reporting a company's profits from the operations of an affiliated company that it has an interest in but does not own outright.

As noted above, the pooling of interests method of accounting was phased out by the Financial Accounting Standards Board (FASB) in January 2001 under Statement No. 141.

Forensic accounting deals with the application of accounting methods to legal problems, and comprises investigative accounting and litigation support activities. Investigative accounting (usually ...

Editor: Jeffrey N. Bilsky, CPA. Since the passage of the Inflation Reduction Act of 2022, P.L. 117 – 169, the IRS expanded its enforcement activity, including increased exams of complex business ...

One of the most popular accounting solutions, QuickBooks Online is a scalable software that’s a great option for a variety of small businesses. QuickBooks Online Review 2025: Pros, Cons ...