A company using LIFO for tax purposes ________.
A) can use either LIFO or FIFO for financial reporting
B) must use LIFO for financial reporting
C) will have more taxes to pay with LIFO than FIFO in a period of rising inventory costs and stable inventory levels
D) will report higher net income with LIFO than FIFO in a period of rising inventory costs and stable inventory levels

Question

Quizplus · Accepted Answer

A company using LIFO for tax purposes must also use LIFO for financial reporting due to the LIFO conformity rule.

A Company Using LIFO for Tax Purposes ________