The U.S.tax Code Requires

question 156

Multiple Choice

The U.S.tax code requires:

• A)Periodic FIFO be used for tax reporting.
• B)Periodic LIFO be used for tax reporting.
• C)If a company uses FIFO for tax reporting,it must also be used for financial reporting - called the FIFO conformity rule.
• D)If a company uses LIFO for tax reporting,it must also be used for financial reporting - called the LIFO conformity rule.
• E)Weighted average be used for tax reporting.

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Definitions:

Sufficient Consideration

The value that is deemed adequate by the parties involved and law as part of an agreement or contract, ensuring it is binding and enforceable.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform international sales law.

Consideration

Something of value exchanged between parties in a contract that is necessary for the agreement to be legally binding, such as money, services, or promises.

UCC

Short for Uniform Commercial Code, it is a set of laws that provide legal framework for commercial transactions in the United States.