A company uses a "LIFO reserve" because
A)internal reporting and GAAP reporting is not the same as tax reporting
B)internal reporting and GAAP reporting is the same as tax reporting
C)internal reporting is the same as GAAP reporting and tax reporting
D)internal reporting is not the same as GAAP reporting and tax reporting

Question

Quizplus · Accepted Answer

A "LIFO reserve" is used because internal reporting often uses a different inventory accounting method than the LIFO method required for GAAP and tax reporting, leading to differences in reported inventory values.

A Company Uses a "LIFO Reserve" Because