Quiz 8.18 – T/F: LIFO is better for Current Cost of Inventory?
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
LIFO approximates the current cost of inventory better than FIFO, true or false?
LIFO approximates the current cost of inventory better than FIFO, true or false?
What are the advantages of DVL?
True or false, LIFO is chosen to reduce tax payments, primarily.
The timing of the allocation of costs between inventory and cost of goods sold differentiates the perpetual and periodic inventory systems. True or false?
The LIFO conformity rules allows for tax purposes reported by LIFO and any other method except for FIFO for financial reporting purposes. True or false?
The amount of the current year’s cost of goods sold differs between LIFO and FIFO is known as the LIFO reserve, true or false?
True or false, when the LIFO reserve increases in a year, the net income under LIFO is lower than in FIFO.
True or false, if there is a decrease in the LIFO reserve, the cost of goods sold is credited.
Reduction in profits from using LIFO in rising inventory costs is LIFO liquidation. True or false?
If the inventory quantity declines and costs rise, LIFO liquidation profits occur. True or false?