The IRS requires that any firm using ______ for tax purposes must use ______ for financial statement reporting purposes.
A)FIFO,LIFO
B)LIFO,LIFO
C)FIFO,FIFO
D)LIFO,FIFO

Question

Quizplus · Accepted Answer

The IRS requires that if a company uses the Last-In, First-Out (LIFO) method for tax purposes, it must also use LIFO for financial reporting purposes. This is known as the LIFO conformity rule.

The IRS Requires That Any Firm Using ______ for Tax