Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Chapter 15, Problem 13DQ
Summary Introduction
To determine: The impact of eliminating LIFO on manufacturing operations.
Introduction:
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Why do U.S. companies keep using LIFO while IFRS prohibits it?
a. LIFO provides a more realistic income statement since the most recent items purchased are what is measured on the income statement.
b. LIFO assigns less weight to the balance sheet.
c. The taxing authority in the U.S. has conformity provisions.
Which of the following is true of accounting for research and development cost?
Responses
Accounting for research and development costs is same under U.S. GAAP and IFRS.
Accounting for research and development costs is same under U.S. GAAP and IFRS.
The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings.
The current accounting for research and development costs under U.S. GAAP avoids the probability of companies to manipulate their earnings.
U.S.GAAP adheres to the matching principle by expensing research and development costs.
U.S.GAAP adheres to the matching principle by expensing research and development costs.
Under U.S. GAAP accounting for research and development costs violates the conservative principle.
Under U.S. GAAP accounting for research and development costs violates the conservative principle.
A challenge facing U. S. companies adopting IFRS is ______________________________.
a.certain areas exist where convergence may not be achieved
b.all options are correct
c.the costs incurred to do so
d.the subjectivity introduced into financial reporting
Chapter 15 Solutions
Accounting Information Systems
Ch. 15 - Prob. 1RQCh. 15 - Explain the three key drivers of complexity in...Ch. 15 - Describe the three key characteristics of...Ch. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - a. How are a bill of materials (BOM) and a routing...Ch. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Why is inventory management and control important...Ch. 15 - Prob. 21RQCh. 15 - Prob. 1DQCh. 15 - Prob. 3DQCh. 15 - What industry do you believe is a leader in...Ch. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - In addition to the industries mentioned in...Ch. 15 - A main goal of JIT is zero inventories. a. Assume...Ch. 15 - Prob. 11DQCh. 15 - Discuss how the inventory process supports the...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 1SPCh. 15 - Prob. 2SPCh. 15 - Prob. 3SPCh. 15 - Prob. 4SPCh. 15 - Prob. 5SPCh. 15 - Study Figure 15.8, showing the level 0 DFD of the...Ch. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Prob. 7P
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Why are perpetual inventory systems more expensive to operate than periodic inventory systems? What conditions justify the additional cost of a perpetual inventory system?arrow_forwardWhat does Accounting harmonization mean? Differentiate harmonization from convergence or adoption. Explain few benefits of global adoption of IFRSs.arrow_forwardIn the era of globalization, what steps should be taken by theEntrepreneur to upgrade the technology of their business to make themcompetitive?arrow_forward
- Discuss the financial and nonfinancial implications of: Global sourcing Holding inventoryarrow_forwardAny effort towards standardizing accounting practices on an international basis implies a belief that a globalized ‘one size fits all’ approach is appropriate. Is this naive?arrow_forwardIdentifying Risk Levels If risk is to be analyzed in a qualitative way, place the following investment decisions in order from the lowest risk to the highest risk: a. New equipment b. New market c. Repair of old machinery d. New product in a foreign market e. New product in a related market f. Addition to a normal product linearrow_forward
- Does GAAP distinguish between fair values that are readily determinable from current market prices versus those needing to be calculated based on the company’s own assumptions? Explain how a user will know about the reliability of the inputs used to determine fair value.arrow_forwardWhich of the following does NOT accurately describe the requirements to apply relative valuation? a. The market value of the comps should be available. b. The valuation object should be compared with similar firms, preferably in industry, size, market and other measures. c. The market value of the valuation object should be available. d. The prices of the comps should be standardized, meaning a price ratio instead of the absolute price value should be compared.arrow_forwardQueetion . What are the plausible reasons GENERAL MILLS use the LIFO method for its US inventories? (Select all the apply.) O US GAAP allows for LIFO while IFRS (international accounting standards used outside the US) prohibits LIFO O To record lower depreciation and amortization expenses O To increase operating cash flows O To serve its US customers with the freshest (i.e., most recent) products first while serving stale products to its international customers O To save on taxes O To report higher profitsarrow_forward
- Could Blades modify the timing of the Thai imports to reduce its transaction exposure? What is the tradeoff of such a modification?arrow_forward“On an international scale, tax authorities and international organisations increasingly scrutinize and penalizemultinational corporations for misusing transfer pricing.” In light of this statement, critically evaluate why MNCsstill engage in transfer pricing.=arrow_forwardWhat macroenvironmental factors have affected Xerox’s performance during that period?arrow_forward
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Chapter 6 Merchandise Inventory; Author: Vicki Stewart;https://www.youtube.com/watch?v=DnrcQLD2yKU;License: Standard YouTube License, CC-BY
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