True or False: if false explain why:

11. A perpetual inventory system calculates cost of goods sold after every transaction. 12. Companies that use LIFO must report a LIFO reserve. 13. While LIFO companies usually show lower profits than they would have with FIFO, a LIFO liquidation usually increases profits relative to not doing a LIFO liquidation. Costs to transport inventory to retail locations are included in the inventory balance until sold. Costs to insure inventory in the warehouse are included in the inventory balance until sold. 14. 15. 16. Switching from LIFO to FIFO will not affect a company's current ratio. 17. If a company uses LIFO for tax purposes, it must for external financial reporting as well. However, a company could use accelerated depreciation for tax purposes but straight-line for external financial reporting. Depreciation, amortization, and depletion are all expenses associated with different types of current assets. 18