True or False
1. ____ Using the LIFO cost assumption will always result in a lower net income than using the
FIFO cost assumption.
2. ____ The United States is the only country that allows LIFO.
3. ____ LIFO tends to provide a better match of costs and expenses than FIFO and averaging.
4. ____ Companies can use LIFO for tax purposes and FIFO for financial reporting.
5. ____ The larger the inventory turnover, the better, in most cases.
6. ____ It is impossible for decision makers to compare a company who uses LIFO with one who uses FIFO.
7. ____ A jewelry store or boat dealership would normally be able to use the specific identification method.
8. ____ The underlying concept of FIFO is that the earliest inventory purchased would be sold first.
9. ____ Gross profit percentage can help users determine how long it takes companies to sell inventory after they purchase it.
10. ____ LIFO liquidation may artificially inflate net income.