Both US GAAP and IFRS Permit Companies to Use Fair Value

question 57

True/False

Both U.S. GAAP and IFRS permit companies to use fair value in reporting available-for-sale and held-to-maturity securities.

---

Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold before administrative and other expenses are deducted.

Periodic Inventory System

An inventory accounting system where updates to the inventory account are made at specified intervals, not on a continuous basis.

After-Tax Income

The net income remaining after all tax obligations have been satisfied.

Periodic Inventory System

An inventory system that updates inventory records and calculates cost of goods sold at the end of a reporting period, rather than continuously.