Which of the following statements about inventory accounting is least accurate（）
A: If a U. S. firm uses LIFO for tax reporting it must use LIFO for financial reporting.
B: During periods of rising prices, FIFO based current ratios will be smaller than LIFO based current ratios.
C: U.S. GAAP rules require the use lower of cost or market when reporting inventories.
A: If a U. S. firm uses LIFO for tax reporting it must use LIFO for financial reporting.
B: During periods of rising prices, FIFO based current ratios will be smaller than LIFO based current ratios.
C: U.S. GAAP rules require the use lower of cost or market when reporting inventories.
举一反三
- Which of the following statements is most accurate? ( ) A: Receivable- and inventory-based activity ratios also shed light on the firm's use of financial leverage. B: Receivable- and inventory-based activity ratios also shed light on the "liquidity" of these current assets. C: Coverage ratios also shed light on the "liquidity" of these current ratios. D: Liquidity ratios also shed light on the firm's use of financial leverage.
- Which of the following statements is least accurate（） A: In a period of rising prices, LIFO gives the best COGS, whereas FIFO gives the best inventory balance on the balance sheet. B: In a period of stable prices, LIFO and FIFO will produce similar account balances. C: In a period of rising prices, FIFO gives the best COGS, whereas LIFO gives the best inventory balance on the balance sheet.
- During periods of rising prices, which of the following statements is correct A: LIFO COGS ＞ weighted average COGS ＞ FIFO COGS B: LIFO COGS = weighted average COGS = FIFO COGS C: LIFO COGS ＜ weighted average COGS ＜ FIFO COGS
- Is the reporting of an extraordinary item, net of tax, allowed under U. S. GAAP and International Financial Reporting Standards (IFRS)（） A: Yes, under both. B: Yes, under IFRS, but not under U. S. GAAP. C: Yes, under U. S. GAAP, but not under IFRS.
- Which of the following statements about financial statements and reporting standards is least accurate（） A: Reporting standards focus mostly on format and presentation and allow management wide latitude in assumptions. B: The objective of financial statements is to provide economic decision makers with useful information. C: Reporting standards ensure that the information in financial statements is useful to a wide range of users.