Specific Identification Must Be Used for Inventory Valuation Where the Inventory

question 161

Short Answer

Specific Identification must be used for inventory valuation where the inventory items are not interchangeable under $\begin{array} { l l l } & \underline{ \text {GAAP }} & \underline{ \text { IFRS }} \\\end{array}$
A) $\begin{array} { l l l } &\text { Yes } & &\text { No } \\\end{array}$
B) $\begin{array} { l l l } &\text { Yes } && \text { Yes } \\\end{array}$
C) $\begin{array} { l l l }& \text { No } && \text {No } \\\end{array}$
D) $\begin{array} { l l l } &\text { No } && \text {Yes }\end{array}$

• A)\(\begin{array} { l l l } &\text { Yes } & &\text { No } \\\end{array}\)
• B)\(\begin{array} { l l l } &\text { Yes } && \text { Yes } \\\end{array}\)
• C)\(\begin{array} { l l l }& \text { No } && \text {No } \\\end{array}\)
• D)\(\begin{array} { l l l } &\text { No } && \text {Yes }
• \end{array}\)

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Definitions:

Quota

A regulation enforced by authorities that caps the quantity or financial worth of merchandise allowed to be imported or exported within a given timeframe.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Illegal Activities

actions that are forbidden by law and subject to criminal penalties.

Missed Opportunities

Potential benefits or gains that are forfeited when a choice is made over alternative options.