Consider these statements about the use of the LIFO inventory method and determine which are correct.

I. The term "LIFO liquidation" refers to the transition period when a company converts its inventory accounting system from LIFO to FIFO.

II. The distortion of the current ratio caused by using LIFO inventory costing may be adjusted by subtracting the LIFO reserve from current assets.

III. Firms that use LIFO must disclose the dollar magnitude of the difference between LIFO and FIFO cost.

Select one:

a. One is true

b. Two are true

c. All are true

d. All are false