Which of the Following Statements Is False

question 62

Multiple Choice

Which of the following statements is false?

• A) The SEC permits the use of IFRS-based financial statements by international companies with shares trading on U.S. stock exchanges.
• B) Non-U.S. companies operate in the United States but prepare their financial statements using IFRS.
• C) Accountants must convert to U.S. GAAP the IFRS financial statements of foreign subsidiaries that belong to U.S. companies.
• D) The accounting profession has determined that a working knowledge of IFRS is not important for accountants working in the United States.

---

Definitions:

FIFO

FIFO, an acronym for "First In, First Out," is an inventory valuation method where goods purchased first are the ones sold first, affecting cost of goods sold and inventory on the balance sheet.

Inventory Costing Method

This involves various approaches to valuing inventory, including FIFO (first-in, first-out), LIFO (last-in, first-out), and weighted average cost methods, affecting the cost of goods sold and ending inventory valuation.

Physical Flow

The movement and processing of physical goods through the supply chain from raw materials to finished products.

Ending Inventory Value

The total value of all unsold inventory remaining at the end of an accounting period.