Tim's Tams has been using LIFO to value its inventory because it gives a higher cost of goods sold,lower income,and lower taxes.This year Tim's Tams has decided to make a permanent switch to FIFO,even though it will then have to pay more taxes on its higher reported income.This accounting choice would be considered ________.

Question

Quizplus · Accepted Answer

Switching from LIFO to FIFO typically results in reporting higher income and thus paying more taxes. This move is considered aggressive because it aims to show stronger financial performance, despite the higher tax liability.

Tim's Tams Has Been Using LIFO to Value Its Inventory