Lifo for external reporting purposes


Please assist with the given problem.

When a company uses LIFO for external reporting purposes and FIFO for internal reporting purposes, an Allowance to Reduce Inventory to LIFO account is used. This account should be reported

Choose one answer.

a. on the income statement in the Other Revenues and Gains section.
b. on the income statement in the Cost of Goods Sold section.
c. on the income statement in the Other Expenses and Losses section.
d. on the balance sheet in the Current Assets section.

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Accounting Basics: Lifo for external reporting purposes
Reference No:- TGS01896556

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