All of the Following Statements Are True Regarding the LIFO

Multiple Choice

All of the following statements are true regarding the LIFO reserve except:

A) Companies using LIFO are required to report the LIFO reserve.
B) The equation (LIFO inventory - LIFO reserve = FIFO inventory) adjusts the inventory balance from LIFO to FIFO.
C) The financial statement differences of using LIFO normally increase the longer a company uses LIFO.
D) Current ratios and the inventory turnover can be significantly affected if a company has material LIFO reserves.