Question: 1. Explain how LIFO generally results in lower income taxes payable when inventory costs are increasing. What is the LIFO conformity rule?
2. What is the difference between the timing of recording inventory transactions under the perpetual and periodic inventory systems?
3. Explain how freight charges, purchase returns, and purchase discounts affect the cost of inventory.
4. What is a multiple-step income statement? What information does it provide beyond "bottom-line" net income?