Which of the Following Is a CORRECT Statement About the Lower-Of-Cost-Or

question 93

Multiple Choice

Which of the following is a CORRECT statement about the lower-of-cost-or market rule?

• A)Under U.S. GAAP, once inventory has been written down to market value, the write-downs can be reversed in future periods.
• B)Under U.S. GAAP, the lower-of-cost-or-market rule is optional.
• C)Currently, the lower-of-cost-or-market rules are the same for both U.S. GAAP and IFRS.
• D)Under IFRS, some lower-of-cost-or-market write-downs may be reversed.

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Definitions:

Rate of Yield

The rate of yield is the return on an investment over a period of time, expressed as a percentage of the investment's cost.

Differential Rate

A rate that varies based on certain conditions or tiers, often used in interest rates or utility billing.

Commission Charges

Fees that are paid to an agent or service provider as compensation for facilitating transactions or services, typically calculated as a percentage of the sale price.

Proceeds

The total amount of money received from a transaction or event, such as the sale of assets or issuance of stock.