Question : 11.Which inventory cost flow assumption allowed under U.S. GAAP but : 1235985

11.Which inventory cost flow assumption is allowed under U.S. GAAP but not under IFRS?
A.Specific identification.
B.FIFO.
C.LIFO.
D.Average cost.

12.Which of the following statements is true regarding revaluation of property, plant, and equipment to fair value?
A.Only IFRS allows revaluation of property, plant, and equipment to fair value.
B.Only U.S. GAAP allows revaluation of property, plant, and equipment to fair value.
C.Both U.S. GAAP and IFRS allow revaluation of property, plant, and equipment to fair value.
D.Neither U.S. GAAP nor IFRS allows revaluation of property, plant, and equipment to fair value.

13.Compared to that in the U.S, the cost to companies in other countries of documenting effective internal controls is:
A.Much greater.
B.Slightly greater.
C.About the same.
D.Much less.

14.Why are some U.S. companies opposed to elimination of the LIFO inventory method?
A.Inventory amounts are more difficult to calculate under FIFO.
B.LIFO most likely matches actual flow of inventory.
C.Increased tax burden.
D.Most international companies use LIFO.

15.Assuming rising costs, the switch from LIFO to FIFO or average cost would most likely have what effect(s)?
A.Increase reported net income in the income statement.
B.Decrease tax obligations to the Internal Revenue Service (IRS).
C.Increase reported net income and tax obligations.
D.Decrease reported net income and tax obligations.

16.Suppose a company has research costs of $100,000 and development costs of $200,000 for the year. Under IFRS, what amount would be reported as an expense in the current year’s income statement?
A.$100,000.
B.$150,000.
C.$200,000.
D.$300,000.

17.Suppose a company has research costs of $100,000 and development costs of $200,000 for the year. Under U.S. GAAP, what amount would be reported as an expense in the current year’s income statement?
A.$100,000.
B.$150,000.
C.$200,000.
D.$300,000.

18.Would a company be more likely to report a contingent liability under U.S. GAAP or IFRS?
A.U.S. GAAP.
B.IFRS.
C.Equally likely.
D.Contingent liabilities are not reported under IFRS.

19.Suppose a severe storm floods a company’s headquarters, causing damages to the building of $300,000 and destruction of inventory of $200,000. Because of the unusual nature of this event, the company had no flood insurance to cover these losses. Under IFRS, how much would the company report as an extraordinary loss in the current year’s income statement?
A.$0.
B.$200,000.
C.$300,000.
D.$500,000.

20.Suppose a severe storm floods a company’s headquarters, causing damages to the building of $300,000 and destruction of inventory of $200,000. Because of the unusual nature of this event, the company had no flood insurance to cover these losses. Under U.S. GAAP, how much would the company report as an extraordinary loss in the current year’s income statement?
A.$0.
B.$200,000.
C.$300,000.
D.$500,000.

21.Suppose a company pays interest of $10,000 for the year on borrowed amounts due in two years. Under IFRS, what is the most the company can report as cash outflows from financing activities?
A.$10,000.
B.$2,000.
C.$5,000.
D.$0.