Once the Election to Use the LIFO Inventory Method Has

question 101

True/False

Once the election to use the LIFO inventory method has been made by a taxpayer, the inventory method may be changed only with the consent of the IRS.

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Definitions:

Common Stock

Equity shares issued by a corporation representing ownership rights, including voting privileges and a share in corporate profits.

Cash Dividend

A cash dividend is a payout of earnings by a corporation to its shareholders in the form of cash.

Financial Statements

Documents that present an organization's financial performance and position, including the income statement, balance sheet, and cash flow statement.

Liabilities

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.