Which of the following are prohibited when accounting for inventory under U.S. GAAP? a. FIFO method b. Average cost method c. Recovery of written down inventory d. LIFO method 2. Under IFRS GAAP research costs and development costs (when product technologically and economically feasible) are

Which of the following are prohibited when accounting for inventory under U.S. GAAP? a. FIFO method b. Average cost method c. Recovery of written down inventory d. LIFO method 2. Under IFRS GAAP research costs and development costs (when product technologically and economically feasible) are

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 3Q

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

1. Which of the following are prohibited when accounting for inventory under U.S. GAAP?

a. FIFO method

b. Average cost method

c. Recovery of written down inventory

d. LIFO method

2. Under IFRS GAAP research costs and development costs (when product technologically and economically feasible) are

a. both capitalized

b. both expensed

c. research costs are expensed and development costs are capitalized

d. research costs are capitalized and development costs are expensed

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