A Business Uses the Same Inventory Method for Both Financial

question 51

Multiple Choice

A business uses the same inventory method for both financial reporting and tax reporting.Because of the UNICAP requirement,ending inventory is likely to be

• A)higher for tax reporting purposes than for financial reporting purposes.
• B)higher for financial reporting purposes than for tax reporting purposes.
• C)the same for both financial and tax reporting as UNICAP requires uniform inventory accounting methods.
• D)none of the above.

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Definitions:

Intended

Something that is planned or meant to happen in a specific way.

Price Floors

Price controls that outlaw trade at prices below the floor.

Intended

Designed or planned to serve a particular purpose.

Technological Advancement

The process of innovation and improvement in technology, leading to the development of new products or the enhancement of existing ones.