Which of the Following Statements Is False

question 31

Multiple Choice

Which of the following statements is false?

• A)Companies are allowed to use more than one inventory valuation method.
• B)LIFO is an income tax concept.
• C)Using FIFO for high-technology products makes sense if the firm is trying to reduce taxes because the technology industry is generally deflationary.
• D)Companies using IFRS may not reverse entries for inventory write-downs if the market recovers.

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Definitions:

Cash Flows

Cash flows refer to the net amount of cash and cash-equivalents being transferred into and out of a business, indicating its financial health.

Partnership Income

The share of earnings distributed to partners in a partnership business, typically based on the terms of the partnership agreement.

Personal Income

Personal income is the total earnings received by an individual, including wages, investments, and benefits, used to evaluate financial health.

Capital Expenditure

Resources utilized by an organization for the purpose of purchasing, improving, and preserving tangible assets like land, factories, or machinery.