Moving to the next question prevents changes to this answer. Question 21 Which one of the following statements is true? In periods of declining prices, LIFO will result in the payment of lower income taxes. Companies may use LIFO for tax purposes and FIFO in the financial statements. Accounting principles do not require that the inventory cost flow approximate the physical flow of goods. Income manipulation is difficult under LIFO. A Moving to the next question prevents changes to this answer. MacBook Pro G Search or type URL # $ % A ( 3 4 5 & 7 6 8