Use of the LIFO Method Has Been Deemed Unacceptable Under

question 33

Multiple Choice

Use of the LIFO method has been deemed unacceptable under AASB 102 because?

• A) It presents too many options to report preparers and may confuse them.
• B) This method allows profits to be manipulated by purchasing items at year's end even though they have not been sold.
• C) It can result in higher cost of goods sold figures and therefore lower taxes.
• D) This method did reflect the actual physical flow of inventories.
• E) All of the given answers.

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Definitions:

Wheezing

A high-pitched whistling sound made while breathing, often associated with respiratory illness or asthma.

Pyothorax

The accumulation of pus in the pleural cavity between the lung and the chest wall, often due to infection.

Py/o

A prefix in medical terms indicating the presence of pus.

Influenza

A viral infection that attacks the respiratory system, commonly known as the flu.