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18 August, 05:39

The LIFO conformity rule: Multiple Choice a) Requires that all companies in the same industry use the same accounting methods of inventory valuation. b) Requires when LIFO is used for tax reporting, it is also used for financial reporting. c) Is also called the taxation principle. d) Requires a company to use one method of inventory valuation exclusively. e) Is only applicable to the automotive industry.

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  1. 18 August, 08:44
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    Answer:b - Requires when LIFO is used for tax reporting, it is also used for financial reporting

    Explanation:

    LIFO conformity rule states that when the LIFO method is used for accounting for inventory for tax reporting, it should be used in preparing financial statements.

    The LIFO conformity rule is a statutory requirement in the U. S.
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