Question
1. The LIFO conformity rule states that: Multiple Choice A. if LIFO is used for tax purposes, the external financial statements must also use LIFO.
1. The LIFO conformity rule states that:
Multiple Choice
A. if LIFO is used for tax purposes, the external financial statements must also use LIFO.
B. if FIFO is used for tax purposes, the external financial statements must also use FIFO.
C. if LIFO is used for tax purposes, the external financial statements must use FIFO.
D. if FIFO is used for tax purposes, the external financial statements must use LIFO.
2. Petroleum, pharmaceutical, chemical, and other large manufacturing companies are more likely to use this inventory cost flow assumption, than companies operating in other industries.
Multiple Choice
A. LIFO
B. FIFO
C. Weighted-average
D. LCM
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