When a company changes its inventory method to LIFO, an exception is made for the way accounting changes usually are reported. Explain the difference in the accounting treatment of a change to the LIFO inventory method from other inventory method changes.

When identical units of an item are purchased at different costs a. an inventory cost flow method must be used under a periodic inventory system only. b. an inventory cost flow method is not used under either a perpetual or a periodic inventory system. can inventory cost flow method must be used under both a perpetual and a periodic inventory system. d. an inventory cost flow method must be used under a perpetual inventory system only.

Provide a critique of the accounting policy for inventory included in the financial statement in terms of the financial reporting standards

Under a perpetual inventory system, acquisition of inventory is dented to the purchases account. True or false?

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Neither GAAP nor IFRS allow inventory to be adjusted upward beyond the original cost. True or False True False

If a misstatement of inventory occurs, the net income for-----periods will be misstated

For each change or error below, indicate how it would be accounted for.  1. Change due to understatement of inventory. options: A.) accounted for prospectively  b.) prior period adjustment    2.  change from direct write-off to allowance method of accounting for bad debts. Options: a.) accounted for retrospectively b.) prior period adjustment

What inventory costing methods are allowed under IFRS? How does this differ from the treatment under U.S. GAAP?