Lisle Inc.manufactures small appliances in three plants in the Southeast.Which of the following statements is true?
A)If Lisle uses LIFO to compute the cost of goods sold for tax purposes,it must use LIFO for financial statement purposes.
B)If Lisle uses FIFO to compute the cost of goods sold for tax purposes,it must use LIFO for financial statement purposes.
C)Lisle is not allowed to use LIFO to compute the cost of goods sold for tax purposes.
D)None of the above statements is true.

Question

Quizplus · Accepted Answer

The LIFO conformity rule requires that if a company uses LIFO for tax purposes, it must also use LIFO for financial reporting purposes.

Lisle IncManufactures Small Appliances in Three Plants in the Southeast