Which Inventory Cost Flow Assumption Is Not Allowed for Financial

question 73

Multiple Choice

Which inventory cost flow assumption is not allowed for financial reporting in many foreign countries?

• A)specific identification
• B)average
• C)FIFO
• D)LIFO

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Definitions:

Misrepresentation

The act of providing false or misleading information about a material fact, intentionally or negligently, causing someone to enter into a contract.

Affirmed

Officially confirmed or validated.

Rescission

The legal process of canceling, terminating, or reversing a contract, returning all parties to their positions prior to the agreement.

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.