The LIFO conformity rule:
A)Requires when LIFO is used for tax reporting,it is also used for financial reporting.
B)Requires a company to use one method of inventory valuation exclusively.
C)Requires that all companies in the same industry use the same accounting methods of inventory valuation.
D)Is also called the taxation principle.
E)Is only applicable to the automotive industry.

Question

Quizplus · Accepted Answer

The LIFO conformity rule requires that if a company uses LIFO for tax reporting purposes, it must also use LIFO for financial reporting. This ensures consistency and comparability in financial statements.

The LIFO Conformity Rule