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The Following Information Pertains to Inventory Held by a Company

Question 40

Multiple Choice

The following information pertains to inventory held by a company at December 31, 2011. The following information pertains to inventory held by a company at December 31, 2011. As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS? A) U.S. GAAP income is $1,000 higher. B) U.S. GAAP income is $2,000 lower. C) IFRS income is $1,000 higher. D) IFRS income is $1,000 lower. E) IFRS income is $5,000 higher. As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?


A) U.S. GAAP income is $1,000 higher.
B) U.S. GAAP income is $2,000 lower.
C) IFRS income is $1,000 higher.
D) IFRS income is $1,000 lower.
E) IFRS income is $5,000 higher.

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