The LIFO Conformity Rule

question 217

Multiple Choice

The LIFO conformity rule:

• A)Requires when LIFO is used for tax reporting,it is also used for financial reporting.
• B)Requires a company to use one method of inventory valuation exclusively.
• C)Requires that all companies in the same industry use the same accounting methods of inventory valuation.
• D)Is also called the taxation principle.
• E)Is only applicable to the automotive industry.

---

Definitions:

Explicit Memory

The conscious recall of facts and experiences that one can consciously declare or "declare."

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Phonological Loop

A component of working memory model that deals with auditory information and preserves the order of information.