Multiple Choice
Which of the following is true regarding the LIFO method of inventory costing?
A) A company can use LIFO for tax purposes and FIFO for financial reporting purposes.
B) Very few U.S. companies use the LIFO method.
C) If a LIFO liquidation occurs, income tax expense will decrease.
D) When prices are rising, income taxes are the lowest when the LIFO method is used.
Correct Answer:
Verified
Correct Answer:
Verified
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