Which One of the Following Statements Is False

question 147

Multiple Choice

Which one of the following statements is false?

• A)Differences in cash flows between LIFO and FIFO inventory methods are a direct result of the differences in the purchases
• B)Differences in cash flows between LIFO and FIFO inventory methods are caused by differences in taxes.
• C)The amount of cash to acquire inventory is the same for companies that use LIFO as for those companies that use FIFO.
• D)The primary determinant in selecting an inventory costing method should be the ability of the method to accurately reflect the net income of the period.

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Definitions:

Outsider Bias

The tendency to favor persons outside one's group, often overestimating their qualifications or abilities, usually in comparison to insiders.

Knowledge Valuation

The process of assessing the value of knowledge assets within an organization, often to support decision-making or investment in knowledge management.

Organizational Incentives

Motivators provided by an organization to encourage desired behaviors, performance, or attitudes among its members.

Clique Network

A social network structure where there are tightly-knit groups of individuals (cliques) that have many connections within the group but few outside it.