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

question 101

Multiple Choice

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

• A)Under U.S.GAAP,once inventory has been written down to market value,the write-downs can be reversed in future periods.
• B)Under U.S.GAAP,the lower-of-cost-or-market rule is optional.
• C)Currently,the lower-of-cost-or-market rules are the same for both U.S.GAAP and IFRS.
• D)Under IFRS,some lower-of-cost-or-market write-downs may be reversed.

---

Definitions:

Reversibility

In cognitive development, the understanding that objects can be changed and then returned back to their original form or condition.

Logical Principle

A foundational concept in logic that establishes the framework for deducing truth, including laws such as identity, excluded middle, and non-contradiction.

Seriation

The ability to arrange objects in logical order, often by size, shape, or other attributes, a cognitive skill developed in childhood.

Classification

The action or process of categorizing things based on shared qualities or characteristics.