1. What are the major classifications that might be reported on the balance sheet of a manufacturing company? Of a merchandising company?
 
 
 
 
 
 
 
 
 
 

2. What is the main difference between a perpetual inventory system and a periodic inventory system? Is the value of the ending inventory the same under both methods when the FIFO, LIFO, and average cost flow assumptions are used?
 
 
 
 
 
 
 
 
 
 

3. How does the pooled approach differ from specific goods (unit) LIFO? What are the disadvantages of unit LIFO?
 
 
 
 
 
 
 
 
 
 

4. List two advantages and two disadvantages of LIFO.