U.S.tax law contains a conformity requirement that allows companies to use LIFO for tax purposes only if the companies use LIFO for financial reporting purposes.

Question

Quizplus · Accepted Answer

The statement is true. The conformity requirement in U.S. tax law stipulates that companies can only use LIFO for tax purposes if they also use it for financial reporting purposes.

UStax Law Contains a Conformity Requirement That Allows Companies to Use