A Company That Prepares Its Financial Statements According to International

question 9

Multiple Choice

A company that prepares its financial statements according to International Financial Reporting Standards can use each of the following inventory valuation methods except:

• A)Average cost.
• B)FIFO.
• C)LIFO.
• D)All of these methods can be used.

---

Definitions:

Buying A Warranty

The act of purchasing a guarantee, typically from a manufacturer, that a product will be repaired or replaced if it fails within a certain period of time.

Avoid Risk

The strategy of making decisions that minimize the possibility of experiencing negative outcomes.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident or other vehicle-related damages.

Probability

A measure of the likelihood that a specific event will occur, often expressed as a number between 0 and 1.