Which of the Following Inventory Methods When Used for Income

question 142

Multiple Choice

Which of the following inventory methods when used for income tax purposes must also be used for reporting purposes?

• A)Specific identification
• B)LIFO
• C)FIFO
• D)Average-cost

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Definitions:

Task Behaviors

Actions focused on the logistics of job performance, including planning, organizing, and goal-setting.

Directing Behaviors

Actions taken by leaders to guide, command, or influence the actions and work of others.

Schedule B

A form attached to the IRS Form 1040 that is used to report interest and dividend income over certain amounts.

Forms 1040A

A simplified version of the IRS form 1040 used for filing individual income taxes, now discontinued and replaced by the redesigned Form 1040.