Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) A company must use the FIFO cost flow assumption for taxes as well as for financial accounting and reporting.
B) A company may use FIFO for inventory valuation purposes on the balance sheet provided that LIFO cost of goods sold is reported on the income statement.
C) Application of LIFO for financial reporting purposes must strictly follow IRS regulations relating to LIFO.
D) LIFO is the only inventory method that must be used for financial reporting purposes if used for tax purposes.