3-31Inventory_homework_problems - . Inventory 1. Which of...

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. Inventory 1. Which of the following is true regarding the lower of cost or market principle? a.Using IFRS, “market” has a cap but no floor. b.Reversals of prior write-downs are allowed using US GAAP, but not using IFRS. c.Write-ups of inventory above original cost are allowed using IFRS, but not using US GAAP. d.IFRS typically results in lower write-downs than US GAAP. 2. Which of the following is true regarding write-downs to lower of cost or net realizable value using IFRS? a.Write-downs must be recorded in cost of goods sold. b.Write-downs must be recorded as an expense. c.IFRS does not specify where the write-down should be included on the income statement. d.Write-down should not be recorded in cost of goods sold. 3. Using IFRS, the journal entry to write inventory down to the lower of cost or net realizable value includes which of the following: a.A debit to inventory write-down expense and a credit to inventory valuation allowance. b.A debit to inventory valuation allowance and a credit to inventory write-down expense. c.A debit to inventory write-down expense and a credit to cost of goods sold.
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3-31Inventory_homework_problems - . Inventory 1. Which of...

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