according to irs guidelines, companies may use fifo for financial reporting and lifo for tax reporting. true…

according to irs guidelines, companies may use fifo for financial reporting and lifo for tax reporting. true or false

according to irs guidelines, companies may use fifo for financial reporting and lifo for tax reporting. true or false

Answer

Answer:

False

Brief Explanations:

Under IRS guidelines, if a company uses LIFO for tax reporting, it must also use LIFO for financial reporting (LIFO conformity rule). So companies cannot use FIFO for financial reporting and LIFO for tax reporting.