Which of the Following Statements Is Correct Regarding International Financing

question 67

Multiple Choice

Which of the following statements is correct regarding International Financing Reporting Standards (IFRS) and U.S.GAAP with regard to inventory?

• A)LIFO (last-in, first-out) is permitted under IFRS but not under U.S.GAAP..
• B)When applying lower-of-cost-or-market, U.S.GAPP defines market as net realizable value.
• C)IFRS permits valuing inventories at fair value, similar to the accounting for property, plant, and equipment.
• D)Under U.S.GAPP, if inventory is written down under lower-of-cost-or-market, it may not be written back up its original cost in a subsequent period.
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Definitions:

Cash

Money in the form of bills or coins; an asset that is readily available for transactions.

Dividends

Distribution of a corporation’s earnings to stockholders.

Closed

Refers to an account, operation, or period that has been finalized and no longer available for transactions or adjustments.

Posting

The process of transferring the debits and credits from the journal entries to the accounts.