Companies can and often do use different costing methods for financial reporting and tax reporting.An exception to this is the:
A)Full disclosure principle.
B)Consistency concept.
C)FIFO inventory valuation method.
D)LIFO conformity rule.
E)Matching principle.

Question

Quizplus · Accepted Answer

The LIFO conformity rule is an exception because if a company uses the LIFO (Last In, First Out) method for tax purposes, it must also use LIFO for financial reporting purposes. This rule ensures consistency between tax and financial reporting when LIFO is chosen.

Companies Can and Often Do Use Different Costing Methods for Financial