The Income Tax Saved by Using LIFO Instead of FIFO

question 114

Multiple Choice

The income tax saved by using LIFO instead of FIFO is equal to the ________ times the income tax rate.

• A)cost of the ending inventory
• B)retail price of the ending inventory
• C)cost of the beginning inventory
• D)LIFO Reserve

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Definitions:

Unintentional

Unintentional refers to actions or outcomes that occur without a deliberate plan or intent.

Human Error

Mistakes made by people, especially in the context of work or operating machinery, which can lead to accidents or inefficiencies and are often analyzed for system improvement.

Unintentional

Actions or outcomes that occur without deliberate intent, often resulting in unforeseen consequences or accidents.

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