All of the Following Are Key Similarities Between U

question 36

Multiple Choice

All of the following are key similarities between U.S. GAAP and IFRS with respect to accounting for inventories except

• A) guidelines on ownership of goods are similar.
• B) costs to include in inventories are similar.
• C) LIFO cost flow assumption where appropriate is used by both sets of standards.
• D) fair value valuation of inventories is prohibited by both sets of standards.

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Definitions:

Contracts

Legal agreements between two or more parties that are enforceable by law.

Unauthorized Acts

Actions taken without the necessary permission or authority, often violating agreements or laws.

Principal

The main party to a transaction or contract who has authorized another (an agent) to act on their behalf, or the primary sum of money owed on a loan, excluding interest.

Third Party

An individual or entity that is not a direct participant or primary party involved in a transaction or legal matter.