When Reported in Financial Statements, a LIFO Allowance Account Usually

question 120

Multiple Choice

When reported in financial statements, a LIFO allowance account usually:

• A) Is shown in the firm's income statement.
• B) Is added to LIFO cost to indicate what the inventory would cost on a FIFO basis.
• C) Indicates the effect on income if LIFO were not used.
• D) Shows the current rate of inflation for that asset.