All of the following statements are true regarding the LIFO reserve except:
A)Companies using LIFO are required to report the LIFO reserve.
B)The equation (LIFO inventory - LIFO reserve = FIFO inventory) adjusts the inventory balance from LIFO to FIFO.
C)The financial statement differences of using LIFO normally increase the longer a company uses LIFO.
D)Current ratios and the inventory turnover can be significantly affected if a company has material LIFO reserves.

Question

Quizplus · Accepted Answer

The Answer of All of the following statements are true regarding the LIFO reserve except:
A)Companies using LIFO are required to report the LIFO reserve.
B)The equation (LIFO inventory - LIFO reserve = FIFO inventory) adjusts the inventory balance from LIFO to FIFO.
C)The financial statement differences of using LIFO normally increase the longer a company uses LIFO.
D)Current ratios and the inventory turnover can be significantly affected if a company has material LIFO reserves.

All of the Following Statements Are True Regarding the LIFO