Which of the Following Scenarios Will Not Be Allowed Under

question 19

Multiple Choice

Which of the following scenarios will not be allowed under IFRS?

• A)A landscaping and garden retail store keeps piles of river rock,gravel,paving stones,and small decorative rocks in a fenced area on the side of the store.The store uses the most recent inventory costs when calculating cost of goods sold,since new inventory is piled on top of the older inventory.
• B)A grocery store strictly enforces a shelf rotation policy,so that older inventory is always at the front and sold first.The store uses the oldest inventory costs to calculate cost of goods sold.
• C)A farm chemical supplier maintains a large holding tank of chemicals,into which deliveries are periodically combined with the older chemicals.The supplier averages the cost of all inventory to calculate cost of goods sold.
• D)All of the above are acceptable under IFRS.

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Definitions:

Asci

Specialized spore-bearing cells found in the fruiting bodies of ascomycete fungi.

Basidia

Specialized spore-producing structures found in Basidiomycota fungi, typically shaped like a club.

Coenocytic

Refers to a cellular structure containing multiple nuclei within a shared cytoplasm, typically found in some fungi and algae.

Ascomycete

Member of a phylum of fungi characterized by the production of nonmotile asexual conidia and sexual ascospores.