Use of the LIFO method has been deemed unacceptable under AASB 102 because?
A) It presents too many options to report preparers and may confuse them.
B) This method allows profits to be manipulated by purchasing items at year's end even though they have not been sold.
C) It can result in higher cost of goods sold figures and therefore lower taxes.
D) This method did reflect the actual physical flow of inventories.
E) All of the given answers.

Question

Quizplus · Accepted Answer

The LIFO method can allow profits to be manipulated by purchasing items at the end of the year, which can distort financial statements and does not align with the principles of AASB 102.

Use of the LIFO Method Has Been Deemed Unacceptable Under