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.

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