Jacob Corporation decides to use the LIFO method of inventory valuation.Which of the following is true?
A)Jacob can change to FIFO whenever it wishes.
B)Jacob must use LIFO in its financial statements.
C)Jacob will have higher taxable income if prices are rising.
D)Jacob can include FIFO information on the face of the income statements.

Question

Quizplus · Accepted Answer

Jacob Corporation must use the LIFO method consistently in its financial statements once it has chosen this inventory valuation method. This ensures consistency and comparability of financial information over time.

Jacob Corporation Decides to Use the LIFO Method of Inventory