Which of the Following Is True Regarding the Use of LIFO

question 77

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-net realizable value approach.
• C)If LIFO is used for external financial reporting, then it cannot be used for tax purposes.
• D)None of these.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability within a dataset, indicating how spread out the data points are from the mean.

Hours

A unit of time equal to 60 minutes.

Computers

Electronic devices that can store, retrieve, and process data, and execute programmed instructions.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.