A company that prepares its financial statements according to International Financial Reporting Standards can use each of the following inventory valuation methods except:
A)Average cost.
B)FIFO.
C)LIFO.
D)All of the above methods can be used.

Question

Quizplus · Accepted Answer

Under IFRS, LIFO (last-in, first-out) method is not permitted for inventory valuation. The company can use either average cost or FIFO (first-in, first-out) method for inventory valuation. Therefore, the correct answer is C) LIFO.

A Company That Prepares Its Financial Statements According to International