Which of the Following Is True Regarding the Use of LIFO

question 42

Multiple Choice

Which of the following is true regarding the use of LIFO for inventory valuation?

• A) If LIFO is used for external financial reporting, then it must also be used for internal reports.
• B) For purposes of external financial reporting, LIFO may not be used with the lower of cost or market approach.
• C) If LIFO is used for external financial reporting, then it cannot be used for tax purposes.
• D) None of these answers are correct.

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