Which one of the following statements is false?
A) The primary determinant in selecting an inventory costing method should be the ability of the method to accurately reflect the net income of the period.
B) The amount of cash to acquire inventory is the same for companies that use LIFO as for those companies that use FIFO.
C) Differences in cash flows between LIFO and FIFO inventory methods are caused by differences in taxes.
D) Differences in cash flows between LIFO and FIFO inventory methods are a direct result of the differences in the purchases

Question

Quizplus · Accepted Answer

Differences in cash flows between LIFO and FIFO are primarily due to differences in tax liabilities, not directly from the differences in purchases.

Which One of the Following Statements Is False