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Federal Income Tax Rules Allow Businesses to Use Different Inventory

Question 129

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Federal income tax rules allow businesses to use different inventory costing methods for tax reporting and financial reporting with one exception.Which of the following situations is not allowed by federal income tax rules?  Inventory Method  Inventory Method  for Tax Reporting  for Financial Reporting  a. FIFO  LIFO  b. LIFO  FIFO  c. Weighted Average  FIFO  d. LIFO  LIFO \begin{array}{lc}\text { Inventory Method } & \text { Inventory Method } \\\text { for Tax Reporting } & \text { for Financial Reporting } \\\hline \text { a. FIFO } & \text { LIFO } \\\text { b. LIFO } & \text { FIFO } \\\text { c. Weighted Average } & \text { FIFO } \\\text { d. LIFO } & \text { LIFO }\end{array}

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