Use of the LIFO Method Has Been Deemed Unacceptable Under

question 33

Multiple Choice

Use of the LIFO method has been deemed unacceptable under AASB 102 because?

• A) It presents too many options to report preparers and may confuse them.
• B) This method allows profits to be manipulated by purchasing items at year's end even though they have not been sold.
• C) It can result in higher cost of goods sold figures and therefore lower taxes.
• D) This method did reflect the actual physical flow of inventories.
• E) All of the given answers.

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Definitions:

Sensation Seeker

A person who seeks out new and different sensations, experiences, and risks to achieve a heightened sense of excitement and adventure.

Arousal Theory

Arousal Theory suggests that people are motivated to engage in behaviors that help them maintain an optimal level of arousal, balancing between stimulation and relaxation.

Personal Frustration

The feeling of dissatisfaction or disappointment arising from obstacles that hinder one's goals or desires, often leading to stress or conflict.

Self-determination Theory

A theory of motivation that is concerned with supporting our natural or intrinsic tendencies to behave in effective and healthy ways.