Which of the Following Statements Is False

question 2

Multiple Choice

Which of the following statements is false?

• A)Companies do not have to use the same inventory method for all items of inventory.
• B)Companies do not have to consistently use the same inventory costing methods.
• C)Use of the LIFO inventory method during a period of increasing prices may create a conflict of interest between the owners and managers.
• D)A company choosing to maximize stockholders' equity during a period of increasing prices should use the FIFO inventory method.

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Definitions:

Internal Control Strategy

Measures adopted by an organization to ensure accuracy and integrity of its financial reporting, compliance with laws and regulations, and efficiency of operations.

High Degree

A significant amount or level of something, often indicating intensity, quality, or scale.

Trust

The belief in the reliability, truth, ability, or strength of someone or something, critical in personal and professional relationships.

Feedback Controls

A mechanism in systems and organizations used for adjusting operations and outputs based on differences between actual outcomes and desired outcomes.