When Using FIFO for Inventories,market Value Generally Refers to ________

question 62

Multiple Choice

When using FIFO for inventories,market value generally refers to ________ under U.S.GAAP and ________ under IFRS.

• A)current replacement cost;historical cost
• B)historical cost;net realizable value
• C)historical cost;current replacement cost
• D)net realizable value;net realizable value

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Definitions:

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, often aimed at ensuring tax equity.

Sales Taxes

Taxes imposed by governments on the sale of goods and services, collected by sellers at the point of sale.

Proportional

Relating to a relationship or ratio between two quantities where they increase or decrease at the same rate.

Progressive Tax System

A taxation system in which the tax rate increases as the taxable amount increases, leading to higher earners paying a larger percentage of their income in taxes than lower earners.