Which of the following statements is false?
A)Companies are allowed to use more than one inventory valuation method.
B)LIFO is an income tax concept.
C)Using FIFO for high-technology products makes sense if the firm is trying to reduce taxes because the technology industry is generally deflationary.
D)Companies using IFRS may not reverse entries for inventory write-downs if the market recovers.

Question

Quizplus · Accepted Answer

LIFO (Last In, First Out) is not exclusively an income tax concept; it is an inventory valuation method used in accounting to determine the cost of goods sold and ending inventory. It is recognized under US GAAP but not allowed under IFRS for international companies.

Which of the Following Statements Is False