Which of the following is FALSE about a business that uses a hybrid accounting method? If an inventory is necessary to account for income of the business, I generally must use the accrual method for purchases and sales If an inventory is necessary to account for income of the business, in generally must use the cast method for purchases and sales If it uses the cash method to report income, it must also use the cash method to report expenses. If it uses the accrual method to report expenses, it must use the accrual method to report income Which of the following is TRUE about the LIFO method? The items purchased or produced first are treated as the first Items sold during the year The items purchased or produced last are the first items sold. It is the default cost tracking method that the IRS will apply LIFO can only be used by taxpayers who do not have an applicable financial statement