Question 25 Which of the following statements is true? O The FIFO assumption is more in line with the matching principle. O In inflationary times, the LIFO assumption is associated with a higher reported net income The FIFO assumption is often used to reduce income tax costs. The average method assumes most recent costs are transferred first to cost of goods sold The specific identification method physically identifies its remaining inventory Question 24 When the physical count does not agree with the inventory T-account, an adjustment is necessary. True O False Question 23 Traditionally, inventory is reported in the financial statements at: O historical cost. O selling price. O selling cost. O replacement cost. O market value