All of the Following Statements Regarding U

question 62

Multiple Choice

All of the following statements regarding U.S. GAAP and IFRS are true except:

• A) Both U.S. GAAP and IFRS include broad and similar guidance for the items and costs making up merchandise inventory.
• B) Both U.S. GAAP and IFRS require companies to write down inventory when its value falls below the cost presently recorded.
• C) Both U.S. GAAP and IFRS allow reversals of write downs up to the original acquisition cost.
• D) For both U.S. GAAP and IFRS, merchandise inventory includes all items that a company owns and holds for sale.
• E) With limited exceptions, neither U.S. GAAP nor IFRS allow inventory to be adjusted upward beyond the original cost.