Question Details

The major difference between IFRS and GAAP 


Use the following information to answer of questions 1 and 2.
	
	India Eastern Corporation- computation of cost of goods sold is:

		Beginning inventory				Rs10,960,000
		Add: Cost of goods purchased		    40,405,000
		Cost of goods available for sale		    51,365,000
		Ending inventory				    10,320,000
		Cost of goods sold				Rs41,045,000

1.	India East- inventory turnover is
a.	2.83 times.
b.	3.74 times.
c.	3.85 times.
d.	3.98 times.


2.	The average days to sell inventory for India East is 
a.	94.8 days.
b.	91.7 days.
c.	107.4 days.
d.	75.5 days.


3.	At January 1, 2011, Britannica Inc. reported inventory of £425,000. At December 31, 2011, the inventory on hand was £501,000. If cost of goods sold for 2011 was £3,331,250, What is the inventory turnover ratio for the year?
a.	3.9 times.
b.	4.6 times.
c.	7.2 times.
d.	7.8 times.


4.	The 2011 financial statements of Vitturo Company reported beginning inventory of €973,000, ending inventory of €1,023,000, and cost of goods sold of €4,491,000 for the year. Vitturo- inventory turnover ratio for 2011 is
a.	2 times.
b.	2.3 times.
c.	2.7 times.
d.	4.5 times.

5.	The major difference between IFRS and GAAP in accounting for inventories is that
a.	GAAP prohibits the use of specific identification.
b.	IFRS does not require that a physical inventory be taken.
c.	GAAP allows the use of the LIFO cost flow assumption.
d.	GAAP requires that the LIFO cost flow assumption be used.



Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help