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:

Resolving Queries

The process of addressing and clarifying doubts or questions that arise in any context, ensuring understanding or resolving issues.

Time-Driven

Pertaining to operations or processes that are initiated, executed, or measured based on time.

Activity-Based Costing

A method in accounting that assigns costs to products or services based on the activities and resources that go into producing them, aiming for more accurate costing.

Resolving Queries

The process of addressing and answering questions or concerns, commonly within a customer service or information technology context.