A Business Uses the Same Inventory Method for Both Financial

question 61

Multiple Choice

A business uses the same inventory method for both financial reporting and tax reporting.Because of the UNICAP requirement,ending inventory is likely to be

• A)higher for tax reporting purposes than for financial reporting purposes.
• B)higher for financial reporting purposes than for tax reporting purposes.
• C)the same for both financial and tax reporting as UNICAP requires uniform inventory accounting methods.
• D)None of the above.

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Definitions:

Catherine of Aragon

The first wife of Henry VIII of England and queen consort from 1509 to 1533, best known for her marriage's role in the start of the English Reformation.

Ignatius Loyola

Founder of the Society of Jesus (Jesuits), which was a significant force in the Counter-Reformation.

Catholic Reformation

A period of Catholic revival beginning in the late 16th century, in response to the Protestant Reformation, aiming to reform and renew the Roman Catholic Church.

Capuchins

An order of friars within the Catholic Church, known for their missionary work and simple lifestyle, identifiable by their distinct brown robes with large hoods.