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1. T F Accountants often call LIFO the balance sheet approach because the amount it reports for ending inventory better appro
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1. False, under LIFO amount reports for ending inventory do not apporximates the current cost of inventory. FIFO method value inventory at current costs.

2. False, when the value of inventory falls below cost, it is mandatory (Not optional) for companies to record inventory at lower of cost of market value.

3. False, overstating ending inventory in the current year causes net income in the current year to be overstated.

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