Which of the following inventory valuation methods best matches the actual historical

Assuming flat year-over-year sales in a declining price environment under U.S.GAAP, a firm might expect cash flow from operations (CFO) and working capital (WC) under the LIFO (rather than FIFO) inventory method to be:

A.Lower for both CFO and WC.

B.Lower for CFO and higher for WC.

C.Higher for CFO and lower for WC.

A company currently uses LIFO inventory valuation under U.S.GAAP.The company reported an increase in the LIFO reserve for the year.If the company used FIFO rather than LIFO:

A.COGS is lower and net income is lower.

B.CFGO is lower and net income is higher.

C.COGS is higher and net income is lower.

Is the reversal of an inventory write-down permitted under U.S.GAAP (generally accepted accounting principles) and International Financial Reporting Standards (IFRS)?

A.No, under both

B.Yes, under both

C.Yes under IFRS but not under U.S.GAAP

A company, which prepares its financial statements in accordance with IFRS is in the process of developing a more efficient production process for one of its primary products.The most appropriate accounting treatment for those costs incurred in the project is to:

A.expense them as incurred.

B.capitalize costs directly related to the development.

C.expense costs until technical feasibility has been established.