The LIFO Conformity Rule States That If LIFO Is Used

question 25

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.

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Definitions:

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Bankruptcy Abuse Prevention and Consumer Protection Act

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BAPCPA

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Chattel Paper

A document or record that signifies both a monetary obligation and a security interest in or lease of specific goods.