Which of the Following Is True Regarding the LIFO Method

question 166

Multiple Choice

Which of the following is true regarding the LIFO method of inventory costing?

• A) A company can use LIFO for tax purposes and FIFO for financial reporting purposes.
• B) Very few U.S. companies use the LIFO method.
• C) If a LIFO liquidation occurs, income tax expense will decrease.
• D) When prices are rising, income taxes are the lowest when the LIFO method is used.

Comprehend how offers, invitations to offer, and bids work in the contract formation process.

Know the requirements for a valid offer including present intent, definiteness, and communication.

Recognize the impact of offeror's and offeree's actions (including death) on the offer’s validity.

Grasp the significance of the Uniform Commercial Code (UCC) in modifying traditional contract rules, particularly in terms of offer definiteness and gap-filling rules.

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