With Respect to LIFO, Which of the Following Is Incorrect

question 33

Multiple Choice

With respect to LIFO, which of the following is incorrect?

• A)If a company uses LIFO for tax purposes, it must use it for GAAP purposes.
• B)If the LIFO reserve increases in a given year, cost of goods sold under the LIFO inventory costing is higher than it would have been if FIFO had been used for that year.
• C)LIFO results in better matching on the income statement than FIFO.
• D)LIFO results in inventory levels on the balance sheet that are closer to current cost than FIFO.

Understand the impact of trade policies like tariffs and quotas on domestic economies.

Comprehend the principle of foreign exchange rates and their implications for international trade.

Identify different forms of business organizations and their characteristics.

Grasp the concept of international trade and the reasons behind it.

---

Definitions:

Peter Paul Rubens

A prominent Flemish painter of the early 17th century, known for his Baroque style and exuberant compositions.

Seventeenth Century

The period from the year 1601 to 1700 in the Gregorian calendar, a time marked by significant cultural, scientific, and political developments.

Standards Of Beauty

Socially constructed ideals that define what is considered physically attractive in individuals, often varying significantly across different cultures and historical periods.

Slightly Overweight

Describes an individual who has a body weight slightly above what is considered normal or healthy for their height, according to medical standards.