### Question
What does applicable financial statement mean?


### Answer
**Applicable financial statement** has the following meaning in *26 U.S.C. § 471*:

> given the term in section 451(b)(3).

#### Citation:
  - *26 U.S.C. § 471*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart D-Inventories**

