Inventories Flashcards
1
Q
What inventory Valuation method is allowed in GAAP but not IFRS?
A
LIFO
2
Q
What are the 4 inventory valuation methods?
A
Specific Identification
Fifo
Weighted average cost
Lifo
3
Q
Weighted Average Cost Method
A
Total cost of goods available for sale divided by total units available for sale
4
Q
Under which inventory valuation method is the actual cost of each individual item matched to the physical flow of that item?
A
Specific identification
5
Q
How does one compare two companies’ financial info if one uses LIFO and the other FIFO?
A
w/ LIFO reserve; which is the difference between what is reported under LIFO for inventory and COGS, and what is reported under FIFO
