Which of the Following Is Not True

question 234

Multiple Choice

Which of the following is not true?

• A)Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale.
• B)Acquisition cost for a manufacturing firm includes the direct material, direct labor, and manufacturing overhead cost to produce the inventory.
• C)If the market values of inventory items decline below acquisition cost prior to sale, firms must reduce their balance sheet carrying values using the lower of cost or market method.
• D)If the market values of inventories increase during a period, IFRS permits firms to recognize the unrealized gain to the extent that the firm had previously recognized an unrealized loss on those inventory items.
• E)If the market values of inventories increase during a period, U.S.GAAP permits firms to recognize the unrealized gain to the extent that the firm had previously recognized an unrealized loss on those inventory items.

---

Definitions:

Gestalt Psychologists

A group of psychologists who emphasized understanding psychological phenomena by looking at the whole experience rather than breaking it down into parts.

Psychoanalysts

Professionals who practice psychoanalysis, a therapeutic technique originally developed by Freud, focused on exploring unconscious motivations and conflicts to treat psychological disorders.

Behaviorists

Psychologists who focus on observable behaviors and the ways they're learned, rather than on subjective mental states.

Line Drawing

An artistic technique involving making pictures or diagrams with lines on a surface to represent objects, scenes, or situations.