LIFO provides an up-to-date ending inventory on the income statement because it uses the latest purchases to calculate ending inventory.

LIFO

"Last In, First Out," an inventory valuation method where the last items placed in inventory are the first ones sold.

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Income Statement

A financial document outlining a company's revenue, expenses, and profits over a specific period, showing its ability to generate earnings.