FIFO produces a better matching of expenses and revenue when prices are rising. US GAAP requires LIFO when prices are rising. Accumulated depreciation is a liability account. Net book value and fair value are interchangeable. Land and land improvements are depreciated in the same way.

FIFO produces a better matching of expenses and revenue when prices are rising. US GAAP requires LIFO when prices are rising. Accumulated depreciation is a liability account. Net book value and fair value are interchangeable. Land and land improvements are depreciated in the same way.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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TRUE OR FALSE

FIFO produces a better matching of expenses and revenue when prices are rising.
US GAAP requires LIFO when prices are rising.
Accumulated depreciation is a liability account.
Net book value and fair value are interchangeable.
Land and land improvements are depreciated in the same way.

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