Asked by Aishah Khalea on Apr 29, 2024
Verified
The requirement that companies use the same cost flow assumption of all goods of a similar nature is found in GAAP ‾ IFRS ‾\begin{array} { l l l } & \underline{ \text {GAAP }} & \underline{ \text { IFRS }} \\\end{array}GAAP IFRS
A) Yes No \begin{array} { l l l } &\text { Yes } & &\text { No } \\\end{array} Yes No
B) Yes Yes \begin{array} { l l l } &\text { Yes } && \text { Yes } \\\end{array} Yes Yes
C) No No \begin{array} { l l l }& \text { No } && \text {No } \\\end{array} No No
D) No Yes \begin{array} { l l l } &\text { No } && \text {Yes }\end{array} No Yes
Cost Flow Assumption
An accounting method used to value inventory and determine the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).
- Assess the requirements for consistent application of inventory cost flow assumptions.
Verified Answer
SK
Learning Objectives
- Assess the requirements for consistent application of inventory cost flow assumptions.