The LIFO Conformity Rule States That

question 108

Multiple Choice

The LIFO conformity rule states that

• A)if LIFO is used for tax purposes,the external financial statements must also use LIFO.
• B)if FIFO is used for tax purposes,the external financial statements must also use FIFO.
• C)if LIFO is used for tax purposes,the external financial statements must also use FIFO.
• D)if FIFO is used for tax purposes,the external financial statements must also use LIFO.

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Definitions:

Oral Warranties

Guarantees made verbally about the quality or function of a product, not in written form.

Comparative Negligence

A legal doctrine that reduces the plaintiff's damages award by the percentage of their fault in causing the injury.

Strict Liability

Strict Liability is a legal principle that holds an individual or entity responsible for damages or harm caused by their actions, irrespective of negligence or intent.

Contributory Negligence

is a defensive legal strategy used to claim that an injured party cannot recover damages if it is demonstrated that they were also at fault, even partially, for their own injury.