U.S.tax rules specify that if LIFO is used for tax purposes,the external financial statements must also use LIFO.

Name: U.S.tax rules specify that if LIFO is used for tax purposes,the external financial statements must also use LIFO.
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Quizplus · Accepted Answer

This is true. The IRS requires consistency in accounting methods between tax and financial reporting. If LIFO is used for tax purposes, it must also be used for external financial statements.

USTax Rules Specify That If LIFO Is Used for Tax