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Under What Circumstance Will Both U

Question 35

Multiple Choice

Under what circumstance will both U.S. GAAP and IAS 2 provide a similar result with respect to inventory valuation?


A) When historical cost is greater than the net realizable value
B) When replacement cost is lower than historical cost
C) When replacement cost is greater than the net realizable value
D) When normal profit margin is less than 15%

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