The Specific Identification Method

question 149

Multiple Choice

The specific identification method

• A)cannot be used under GAAP.
• B)cannot be used under IFRS.
• C)must be used under IFRS if the inventory items can be specifically identified.
• D)must be used under IFRS if it would result in the lowest net income.

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Definitions:

Required Return

The minimum return an investor expects to receive from an investment, taking into account the risk involved.

Recent Dividend

The latest distribution of a portion of a company's earnings to its shareholders, typically expressed as a dollar amount per share.

Growth Rate

The measure of an entity's capacity to expand over a certain period, often expressed as a percentage.

Constant Dividend

A policy where a firm aims to distribute dividends that are consistent and do not vary with its yearly earnings or profits.