Which of the Following Statements Is True

question 81

Multiple Choice

Which of the following statements is true?

• A) A company must use the FIFO cost flow assumption for taxes as well as for financial accounting and reporting.
• B) A company may use FIFO for inventory valuation purposes on the balance sheet provided that LIFO cost of goods sold is reported on the income statement.
• C) Application of LIFO for financial reporting purposes must strictly follow IRS regulations relating to LIFO.
• D) LIFO is the only inventory method that must be used for financial reporting purposes if used for tax purposes.

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Definitions:

Battered Woman Syndrome

A psychological condition that can occur as a result of prolonged domestic violence, characterized by feelings of helplessness, fear, and a perceived inability to escape from the situation.

Self-Esteem

An individual's subjective evaluation of their own worth, capabilities, and value.

Passively Submitting

The act of accepting or yielding to a situation, authority, or demand without resistance.

Marital Rape

The act of sexual assault by a spouse, recognizing that marriage does not imply consent to all forms of sexual activity.