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.

---

Definitions:

Taste

A sense that detects flavors in substances, primarily recognized via taste buds on the tongue.

Chemical Stimulus

A type of stimulus involving chemicals that can initiate a biological response in an organism or cell.

Olfactory

Relating to the sense of smell or the organs of smell.

Facial

Pertaining to the face or a beauty treatment for the face.