Under IFRS Companies Can Choose Which Inventory System $\begin{array} { l l l } & \text { Perpetual } & \text { Periodic } \\\end{array}$

question 175

Short Answer

Under IFRS companies can choose which inventory system? $\begin{array} { l l l } & \text { Perpetual } & \text { Periodic } \\\end{array}$
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) $\begin{array} { l l l } & \text { No } &&&& \text { Yes } \\\end{array}$
D) $\begin{array} { l l l } & \text { No } &&&& \text { No }\end{array}$

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

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Definitions:

Maximize Profits

The process by which a firm adjusts its production and pricing strategies to earn the highest possible profit.

Economic Profits

Profits calculated by subtracting both the explicit and implicit costs of production from total revenues.

Monopolistically Competitive

Describes a market type where numerous sellers offer differentiated products, leading to competitive yet non-homogeneous markets.

Equilibrium

A condition where the supply and demand in the market are equal, leading to steady prices and amounts.