a) Companies using LIFO are required to disclose the amount at which inventory would have been reported had the company used FIFO. The difference between LIFO and FIFO inventories is called the LIFO reserve.

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True

False

b) In general, in a period of rising prices, FIFO produces higher gross profits than LIFO.

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True

False

c) According to GAAP revenue recognition criteria, in order for revenue to be recognized on the income statement, an amount must be either realized, realizable, or earned.

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True

False