Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
7. The cost of inventories that are not ordinarily 6. Cost of goods sold is the same under periodic system and perpetual system using a. FIFO b. LIFO c. Weighted average d. Specific identification interchangeable and goods produced and segregated for specific projects shall be measured using a. FIFO b. Average method c. LIFO d. Specific identification 8. Which is the reason why the specific identification method may be considered ideal for assigning cost to inventory and cost 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 certain circumstances. Which of the following is likely to be a circumstance where the specific identification method can be 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 an entity builds townhouses? а. FIFO b. Specific identification c. Weighted average d. Any of these cost flow aesumptions
Transcribed Image Text:7. The cost of inventories that are not ordinarily 6. Cost of goods sold is the same under periodic system and perpetual system using a. FIFO b. LIFO c. Weighted average d. Specific identification interchangeable and goods produced and segregated for specific projects shall be measured using a. FIFO b. Average method c. LIFO d. Specific identification 8. Which is the reason why the specific identification method may be considered ideal for assigning cost to inventory and cost 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 certain circumstances. Which of the following is likely to be a circumstance where the specific identification method can be 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 an entity builds townhouses? а. FIFO b. Specific identification c. Weighted average d. Any of these cost flow aesumptions
Problem 11-25 Multiple choice (IAA) 1. IFRS prohibits which cost flow assumption? a. LIFO b. Specific identification 6. Weighted average i Any of these cost flow assumptions is allowed с. , What is the inventory pricing procedure in which the oldest costs rarely have an effect on the ending inventory? a. FIFO b. LIFO c. Specific identification d. Weighted average 3. In a period of falling prices which inventory method generally provides the lowest amount of ending inventory? a. Weighted average b. FIFO c. Moving average d. Specific identification 4. Which inventory cost flow assumption would consistently result in the highest income in a period of rising prices or inflation? a. FIFO b. LIFO c. Weighted average d. Specific identification 3. The costing of inventory must be deferred until the end of reporting period under which of the following method of inventory valuation? a. Moving average b. Weighted average c. LIFÓ perpetual d. FIFO perpetual
Transcribed Image Text:Problem 11-25 Multiple choice (IAA) 1. IFRS prohibits which cost flow assumption? a. LIFO b. Specific identification 6. Weighted average i Any of these cost flow assumptions is allowed с. , What is the inventory pricing procedure in which the oldest costs rarely have an effect on the ending inventory? a. FIFO b. LIFO c. Specific identification d. Weighted average 3. In a period of falling prices which inventory method generally provides the lowest amount of ending inventory? a. Weighted average b. FIFO c. Moving average d. Specific identification 4. Which inventory cost flow assumption would consistently result in the highest income in a period of rising prices or inflation? a. FIFO b. LIFO c. Weighted average d. Specific identification 3. The costing of inventory must be deferred until the end of reporting period under which of the following method of inventory valuation? a. Moving average b. Weighted average c. LIFÓ perpetual d. FIFO perpetual
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS