Which of the Following Statements Is Correct Regarding International Financing

question 12

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 to its original cost in a subsequent period.

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Definitions:

Excessive Hyphenation

The overuse of hyphens in writing, which can make text difficult to read or unnecessarily complicated.

Form Letter

A standardized letter used for sending the same message to different individuals.

Flush Left

In typesetting, to align text along the left margin, leaving a ragged right edge.

Ragged-right Type

A text alignment style where the text is aligned to the left margin, leaving the right edge uneven.