Listed below are 10 terms, followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term.
-LIFO conformity rule
A)Goods are transferred to another company but title remains with transferor.
B)Items sold are those acquired first.
C)Items sold are those acquired last.
D)Inventory is viewed as a quantity of value.
E)Legal title passes when goods arrive at customer location.
F)Items sold come from a mixture of goods acquired during the period.
G)Continuously records changes in inventory.
H)Legal title passes when goods are delivered to common carrier.
I)Adjusts inventory at the end of the period.
J)If LIFO is used for income tax purposes, it must be used for financial reporting.

Question

Quizplus · Accepted Answer

The LIFO conformity rule states that if a company uses the Last-In, First-Out (LIFO) method for tax purposes, it must also use LIFO for financial reporting to shareholders and creditors.

Listed Below Are 10 Terms, Followed by a List of Phrases