"Financial Report":LIFO

來源: 正保會計網(wǎng)校編輯：小鞠橘桔 2020/12/04 13:50:33　字體：大小

學(xué)習(xí)是一個不斷積累的過程，每天學(xué)習(xí)一點(diǎn)，每天進(jìn)步一點(diǎn)！為了幫助大家更高效地備考2021年CFA考試，正保會計網(wǎng)校每日為大家上新CFA習(xí)題供大家練習(xí)。讓網(wǎng)校與您一起高效備考2021年CFA考試，夢想成真！

Questions 1:

One reason that the last-in, first-out (LIFO) inventory valuation method is widely used in the United States is most likely that it:

A、 results in higher reported gross profit.

B、 is available under both US GAAP and International Financial Reporting Standards.

C、 results in higher operating cash flows.

Questions 2:

Depreciation expense under which of the following methods is least likely affected by the estimate of the useful life of the asset?

A 、Double declining balance method

B 、Straight-line method

C、 Units-of-production method

View answer resolution

【Answer to question 1】C

【analysis】

C is correct. LIFO is widely used in the United States because it results in a higher cost of goods sold, and thus lower taxable profits, under the assumption of historically rising prices. Income taxes are correspondingly lower, and thus operating cash flows are higher.

A is incorrect. Under normal conditions (rising prices), the LIFO method results in a higher reported cost of goods sold and a lower reported gross profit.

B is incorrect. IFRS does not allow LIFO as an inventory valuation method

【Answer to question 2】C

【analysis】

C is correct. The units-of-production method is independent of the useful life estimate.

A is incorrect. The double declining balance method is linked to useful life estimate because the “double” refers to doubling the rate determined under the straight-line method which depends on the useful life.

B is incorrect. The straight-line method is linked to useful life estimate.

成功=時間+方法，自制力是這個等式的保障。世上無天才，高手都是來自刻苦的練習(xí)。而人們經(jīng)常只看到“牛人”閃耀的成績，其成績背后無比寂寞的勤奮。小編相信，每天都在勤奮練習(xí)，即使是一點(diǎn)點(diǎn)的進(jìn)步，大家一定可以成為人人稱贊的“牛人”。

點(diǎn)擊了解更多CFA考試資訊>>

上一篇："Financial Report":Revaluation model

下一篇："Financial Report":scale and diversifica...