A company using LIFO for tax purposes______. can either use LIFO or FIFO for fin

Question

A company using LIFO for tax purposes______.

can either use LIFO or FIFO for financial reporting

must use LIFO for financial reporting

will have more taxes to pay with LIFO than FIFO in a period of rising inventory costs and stable inventory levels

will report higher net income with LIFO than FIFO in a period of rising inventory costs and stable inventory levels

can either use LIFO or FIFO for financial reporting

must use LIFO for financial reporting

will have more taxes to pay with LIFO than FIFO in a period of rising inventory costs and stable inventory levels

will report higher net income with LIFO than FIFO in a period of rising inventory costs and stable inventory levels

Explanation / Answer

A company using LIFO for tax purposes must use LIFO for financial reporting Option B is correct

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