Identify any differences between U.S. GAAP and IFRS when applying the lower of cost and net realizable value rule to inventory valuation.

Q: Which of the following statements about the use of the FIFO assumption is NOT true?   a.   The…

A: Solution: "The FIFO assumption produces inventory asset values that are based on older purchase…

Q: Under what circumstances is the relative sales value an appropriate basis for determining the price…

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Q: What factors might call for inventory valuation at salesprices (net realizable value or market…

A: Inventory: Inventory refers to the stock of a business which is traded to earn profits.

Q: Changing the method of inventory valuation should be reported in the financial statements under what…

A: Inventory- A manufacturing company's inventory is a critical current asset. Inventory refers to the…

Q: Identify any differences between U.S. GAAP and International Financial Reporting Standards in the…

A: IFRS or International Financial Reporting Standards are accounting strategies that are applicable in…

Q: Which of the following should not be taken into account when determining the cost of inventory? a.…

A: Solution:- The following should not be taken into account when determining the cost of inventory as…

Q: When assessing inventory management policies, is the current ratio or acid-test ratio more…

A: Current Ratio = Current Ratio is Calculated by dividing the current Assets with current liabilties.…

Q: What is a LIFO inventory pool? How is the cost of ending inventory determined when pools are used?

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Q: total amount of inventory should DEF report for the consigned goods?

A: Cost of goods  Add: Insurance  Add: Freight

Q: At the end of a reporting period, a company will value its inventory under one or two methods: The…

A: Inventory:  Inventory is the raw materials or goods that are held by the business for using in…

Q: Which of the following statements regarding inventory shrinkage is not true?

A: Suppose that there is inventory of $400,000( 5,000 units) in any firm in the beginning of accounting…

Q: For valuation of inventory, the lower of cost or market rule may be applied to a. the total…

A: Inventory of the business should be valued by choosing appropriate method. Lower of cost of market…

Q: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income? a.…

A: Under the FIFO and LIFO, the obtained cost of goods sold can be higher or lower than the actual…

Q: For commercial reasons, a weighted average and inventory system from lifo fifo should be considered.

A: The LIFO (Last in, first-out) The LIFO accounting method is used to value inventory. This method is…

Q: nsidered when not only counting inventory, but likewise in the final valuation of inventory?  Why is…

A: Inventory is the goods lying in the stock of the entity which is either purchased or produced, ready…

Q: Under which method of inventory valuation, the average price used for valuation of goods issued is…

A: Inventory is the material in which the business deal. It is a very important component of company…

Q: What method does the company use to value its inventory? What other alternativesare available under…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: FIFO, average-cost, and LIFO methods are often usedinstead of specific identification for inventory…

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Q: Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable…

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Q: Explain how liquidity measures can be influenced by the inventory cost flow assumption used.

A: Inventory Cost Flow Assumptions means the different techniques of measurement of cost of inventory…

Q: Which inventory cost appears as a Cost of goods sold in an Income statement under FIFO method?

A: “First-In, First-Out” is a method used for cost flow assumption purposes in the cost of goods sold…

Q: Inventory should be measured at lower of fair value and net realizable value of the inventory.

A: The IAS 2 suggests the requirement for the reporting of the inventories. This states that the…

Q: Which of the following should not be taken into account when determining the cost of inventory? A.…

A: As per IAS 2,  Inventory Cost of Inventory  consists  of  1. Purchase cost 2.conversion cost 3.other…

Q: What is the potential impact of differences in areas such as inventory valuation of unilever united…

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Q: Explain the lower of cost or market rule for inventory valuation and explain why it is GAAP.

A: Lower of cost or market value for inventory valuation is just a mixture of many accounting…

Q: What are the reasons for making an estimate of the value of ending inventory?

A: Ending inventory is the value of goods available in the stock at the end of the period

Q: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income?…

A: When a corporation values its inventory using FIFO, it reports reduced COGS, which boosts its gross…

Q: Under IFRS, which of the following methods is not acceptable for the valuation of inventory? a.…

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Q: Which U.S. GAAP principle or rule would apply if the net realizable value of acompany’s inventory is…

A: Net realizable value: Net realizable value is the net amount of receivables which a business expects…

Q: Which one the following types of cost is most likely to be included in determining the cost of…

A: Freight in cost is concerned with the inventory value and should be included in determining the cost…

Q: What is the purpose of disclosing the difference between the reported LIFO inventory amounts and…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Q: Discuss the primary difference between U.S. GAAP and IFRS with respect to determining the cost of…

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Q: Which of the following items should not be included in the cost of inventory?

A: All cost of purchases, cost of conversion, and other costs incurred in bringing the inventories to…

Q: What is the dollar-value method of LIFO inventory valuation?What advantage does the dollar-value…

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Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to the lower of cost or net…

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Q: What inventory costing methods are allowed under IFRS? How does this differ from the treatment under…

A: Inventory valuation refers to the valuation of closing stock in hand which is reflected in the…

Q: Which of the following statements about the use of the FIFO assumption is NOT true? a.The FIFO…

A: In FIFO method  the opening  and earliest goods will be sold first.