4 the lifo conformity rule multiple choice is only applicable to the automotive industry. requires a company…

4 the lifo conformity rule multiple choice is only applicable to the automotive industry. requires a company to use one method of inventory valuation exclusively. is also called the taxation principle. requires that when lifo is used for tax reporting, it must also be used for financial reporting. requires that all companies in the same industry use the same accounting methods of inventory valuation

4 the lifo conformity rule multiple choice is only applicable to the automotive industry. requires a company to use one method of inventory valuation exclusively. is also called the taxation principle. requires that when lifo is used for tax reporting, it must also be used for financial reporting. requires that all companies in the same industry use the same accounting methods of inventory valuation

Answer

Brief Explanations:

The LIFO conformity rule in accounting mandates that if a company uses the Last - In, First - Out (LIFO) method for tax reporting purposes, it must also use LIFO for financial reporting. It is not industry - specific, doesn't mean exclusive use of one inventory valuation method, and isn't called the taxation principle, nor does it require all companies in an industry to use the same inventory valuation method.

Answer:

Requires that when LIFO is used for tax reporting, it must also be used for financial reporting.