7. The cost of inventories that are not ordinarily6. Cost of goods sold is the same under periodic system andperpetual system usinga. FIFOb. LIFOc. Weighted averaged. Specific identificationinterchangeable and goods produced and segregated forspecific projects shall be measured usinga. FIFOb. Average methodc. LIFOd. Specific identification8. Which is the reason why the specific identification methodmay be considered ideal for assigning cost to inventory andcost of goods sold?a. The potential for manipulation of net income is reduced.b. There is no arbitrary allocation of cost.c. The cost flow matches the physical flow.d. It is applicable to all types of inventory.9. IFRS requires the specific identification method in certaincircumstances. Which of the following is likely to be acircumstance where the specific identification method canbe used?a. Unit price is low.b. Inventory turnover is low.c. Inventory quantities are large.d. All of the choices are likely circumstances.10. Which cost flow assumption is used for inventory when anentity builds townhouses?а. FIFOb. Specific identificationc. Weighted averaged. Any of these cost flow aesumptions Problem 11-25 Multiple choice (IAA)1. IFRS prohibits which cost flow assumption?a. LIFOb. Specific identification6. Weighted averagei Any of these cost flow assumptions is allowedс., What is the inventory pricing procedure in which theoldest costs rarely have an effect on the endinginventory?a. FIFOb. LIFOc. Specific identificationd. Weighted average3. In a period of falling prices which inventory methodgenerally provides the lowest amount of endinginventory?a. Weighted averageb. FIFOc. Moving averaged. Specific identification4. Which inventory cost flow assumption would consistentlyresult in the highest income in a period of rising pricesor inflation?a. FIFOb. LIFOc. Weighted averaged. Specific identification3. The costing of inventory must be deferred until the endof reporting period under which of the following method ofinventory valuation?a. Moving averageb. Weighted averagec. LIFÓ perpetuald. FIFO perpetual

Question

Accepted Answer

Cash flow assumption means the method use to calculate the cost of goods sold and cost of ending…

1. IFRS prohibits which cost flow assumption? Problem 11-25 Multiple choice (IAA) LIFO b. Specific identification Weighted average a. с. i Any of these cost flow assumptions is allowed