Which One of the Following Statements Is True

question 14

Multiple Choice

Which one of the following statements is true?

• A)Income manipulation is difficult under LIFO.
• B)Accounting principles do not require that the inventory cost flow approximate the physical flow of goods.
• C)Companies may use LIFO for tax purposes and FIFO in the financial statements.
• D)In periods of declining prices, LIFO will result in the payment of lower income taxes.

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Definitions:

Mortality

The state of being subject to death; often used statistically to refer to the rate of death in a population.

Median Age

The age that divides a population into two numerically equal groups, half of the people being older than this age and half younger.

Canadian

Pertaining to Canada or its people, culture, or characteristics.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society.