The Major Difference Between IFRS and US GAAP in Accounting

question 26

Multiple Choice

The major difference between IFRS and US GAAP in accounting for inventories is that:

• A) US GAAP prohibits the use of specific identification.
• B) IFRS requires the use of the LIFO cost flow assumption.
• C) US GAAP prohibits the use of the LIFO cost flow assumption
• D) US GAAP allows the use of the LIFO cost flow assumption.

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Definitions:

Adolescence

The phase of both physical and mental growth that typically happens between puberty and reaching the age of majority.

Pregnant

The condition of having a developing embryo or fetus within the body, as a result of the fertilization of an egg by a sperm.

Psychosocial Crisis

A turning point or critical period in an individual's life where an adjustment is necessary due to a challenge in social, emotional, or psychological development.

Ego Integrity

A sense of wholeness and fulfilled life achievements, typically sought in later adulthood, representing the final stage of Erik Erikson's psychosocial development theory.