Which of the Following Statements Is Not True

Multiple Choice

Which of the following statements is not true?

A) Differences in cash flows between LIFO and FIFO inventory methods are a direct result of the differences in the purchases.
B) Differences in cash flows between LIFO and FIFO inventory methods are caused by differences in taxes.
C) The amount of cash to acquire inventory is the same for companies that use LIFO as for those companies that use FIFO.
D) The primary determinant in selecting an inventory costing method should be the ability of the method to accurately reflect the net income of the period.