Asked by Julia Holsten on May 22, 2024
Verified
Under IFRS companies can choose which inventory system? LIFO ‾ FIFO ‾\begin{array} { l l l } & \underline{ \text { LIFO }} & \underline{ \text { FIFO }} \\\end{array} LIFO FIFO
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 Yes \begin{array} { l l l }& \text { No } && \text { Yes } \\\end{array} No Yes
D) No No \begin{array} { l l l } &\text { No } && \text { No }\end{array} No No
LIFO
Last In, First Out, an inventory costing method where the last items added to inventory are the first to be used or sold.
FIFO
"First In, First Out," an inventory valuation method where the cost of the earliest goods purchased or produced are the first to be charged against income when those goods are sold.
- Acquire insight into the effects of choosing Last-In, First-Out (LIFO) and First-In, First-Out (FIFO) methodologies for cost flow assumptions as per GAAP and IFRS guidelines.
Verified Answer
NF
Learning Objectives
- Acquire insight into the effects of choosing Last-In, First-Out (LIFO) and First-In, First-Out (FIFO) methodologies for cost flow assumptions as per GAAP and IFRS guidelines.