CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

Which statement is TRUE regarding LIFO liquidations?
A. They occur when management uses the LIFO method initially and changes to FIFO later.
B. They occur when management uses the LIFO method and runs the balance lower to the year's end.
C. They occur when management uses the FIFO method initially and changes to LIFO later.
Explanation: Analysts should watch the LIFO reserve for clues of LIFO liquidation.

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