Under the "Known-User" Rule,it Is Sufficient If a User Is

question 29

True/False

Under the "known-user" rule,it is sufficient if a user is a member of a known class,even if the identity of the particular user is not known to the accountant.

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Definitions:

FIFO Method

A method of inventory costing that assumes the first goods purchased are the first goods sold, affecting the cost of goods sold and ending inventory valuation.

LIFO Method

An inventory management and valuation approach where the last items placed in inventory are the first ones sold.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to ensure financial statements are consistent and transparent.

IFRS

International Financial Reporting Standards - a set of accounting guidelines that provide the basis for cross-border financial reporting.