The LIFO Conformity Rule States That If LIFO Is Used

question 93

Multiple Choice

The LIFO conformity rule states that if LIFO is used for:

• A)One class of inventory,it must be used for all classes of inventory.
• B)Tax purposes,it must be used for financial reporting.
• C)One company in an affiliated group,it must be used by all companies in an affiliated group.
• D)Domestic companies,it must be used by foreign partners.

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Definitions:

Organize

The process of arranging or structuring elements in a systematic way to achieve a desired outcome or order.

Formal Logic

The branch of logic concerned with the structure of reasoning and the validity of arguments, often using symbolic methods.

Intellectual Development

The growth and change in a person's abilities to think, reason, and understand complex concepts and ideas over time.

Cognitive Abilities

Mental skills that involve the ability to think, understand, learn, and remember.