Which of the Following Is a CORRECT Statement About the Lower-Of-Cost-Or

question 121

Multiple Choice

Which of the following is a CORRECT statement about the lower-of-cost-or market rule?

• A)Under GAAP,once inventory has been written down to market value,the write-downs can be reversed in future periods.
• B)Under GAAP,the lower-of-cost-or-market rule is optional.
• C)Under IFRS,lower-of-cost-or-market write-downs cannot be reversed.
• D)Under IFRS,lower-of-cost-or-market write-downs can be reversed.

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Definitions:

Statement of Activities

A financial report summarizing a nonprofit organization's revenues, expenses, and changes in net assets for a specific period.

Supporting Service Costs

Expenses related to activities that do not directly contribute to a company's primary business operations but support the overall functionality and efficiency of the business.

Voluntary Health

Health services or insurance schemes that individuals choose to participate in, as opposed to being compulsory.

Statement of Operations

A financial report that summarizes a company's revenue, expenses, and profits/losses over a specific period of time.