Which Statement Is FALSE

question 132

Multiple Choice

Which statement is FALSE?

• A)Many U.S.companies that currently use LIFO for their U.S.operations must use another method if they have operations in foreign countries.
• B)IFRS does not permit the use of LIFO.
• C)IFRS does permit the FIFO method.
• D)If LIFO is no longer allowed to be used in the United States,the tax burden on many companies will be lower.

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Definitions:

Income Tax Expense

The amount of money a company sets aside to pay its income tax obligations for the year.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of maximizing the value of a firm.

Straight-Line Depreciation

An approach for allocating the expenditure of a material asset over its lifespan in steady yearly payments.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account.