Homework Answers
Answer= D) If a firm uses LIFO for tax purposes, then LIFO must be used for financial reporting purposes.
Explanation
Under current tax laws in the United States, a company which uses the LIFO method for tax purposes must use the LIFO method for financial reporting purposes. Which is know as LIFO conformity rule
The LIFO conformity rule states that if a company uses LIFO for tax purposes, it must also use it for financial reporting purposes
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KQuestion 10 (of 20) 10. Which of the following is(are) true regarding cost flow assumptions? O...
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I need the answers ASAP
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All of the following statements are true regarding the LIFO reserve except: Select one: a. Companies...
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ACCOUNTING k Your 5 & 6 KQuestion 9 (of 20) When a firm uses the LIFO inventory cost flow assumption: O cost of goods sold will be the same as if FIFO were used O better matching of revenue and expense is achieved than under FIFO. O net income will be greater than if FiFO were used cost of goods sold will be greater than if FiFO were used
I need the answers ASAP
5. Which of the following is true regarding the use of LIFO for inventory valuation? A) If LIFO is used for external financial reporting, then it must also be used for internal reports. B) For purposes of external financial reporting, LIFO may not be used with the lower of cost or market approach. C) IF LIFO is used for external financial reporting, then it cannot be used for tax purposes. None of these answers are...
1. Which of the following reduces a company's inventory cost? A. Sales Discounts B. Freight-In C. Freight-Out D. Purchase Discounts E. Bad Debt Expense 3. Which of the following statements is true for companies that use the LIFO method for income tax purposes in the United States? A. They must use the FIFO method for financial statement purposes. B. They are permitted to use any of the inventory costing methods for financial statement purposes. C. They must use the LIFO...
Which of the following statement is true regarding inventory costing? Select one: O A. Under FIFO, the first units purchased are sold and ending inventory is made up of the most recent purchase O B. The cost of ending inventory is the same Under the LIFO and FIFO methods. O C. Both statements are true O D. None of the above statements are true Petty Cash is reserved for large purchases or repairs such as the replacement of a truck...
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