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Which accounting standard requires consistency in inventory valuation methods?

Practice Questions

Q1
Which accounting standard requires consistency in inventory valuation methods?
  1. IFRS
  2. GAAP
  3. IAS
  4. FASB

Questions & Step-by-Step Solutions

Which accounting standard requires consistency in inventory valuation methods?
  • Step 1: Understand what inventory valuation methods are. These are ways to calculate the value of inventory a company has.
  • Step 2: Learn about GAAP, which stands for Generally Accepted Accounting Principles. It is a set of rules for financial reporting.
  • Step 3: Know that GAAP requires companies to use the same inventory valuation method consistently over time.
  • Step 4: Realize that consistency helps in comparing financial statements from different periods or different companies.
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