When Changing from LIFO to FIFO, the Least Likely Result

question 54

Multiple Choice

When changing from LIFO to FIFO, the least likely result would be

• A)disclosing an increase in the inventory balance
• B)disclosing an increase in the deferred taxes account
• C)removing the LIFO reserve
• D)obtaining a tax refund from the IRS

---

Definitions:

Audited Financial Statements

Financial reports that have been reviewed and verified by an independent auditor for accuracy and compliance with accounting standards.

Material Fact

A fact that, if known, would influence a party's decision to enter into a contract or transaction.

Administrative Law Judge

An official who presides over court-like hearings for administrative agencies, making decisions on disputes between the agency and individuals.

Section 12(a)(1)

A specific provision in a statute or legal code, the context of which depends on the broader legislation it is part of.