这题考查的是哪个知识点。

问题如下：

Question A manufacturing company reporting under US GAAP using the FIFO inventory valuation method should measure its finished goods' inventory at the lower of:

选项：

A.cost and market value. B.cost and net realizable value. C.market value and net realizable value.

解释：

Solution

1. Incorrect because US GAAP used to specify the lower of cost or market to value inventories. For fiscal years beginning after December 15, 2016, inventories measured using other than LIFO and retail inventory methods are measured at the lower of cost or net realizable value.

2. Correct because under US GAAP for fiscal years beginning after December 15, 2016, inventories measured using other than LIFO and retail inventory methods are measured at the lower of cost or net realizable value.

3. Incorrect because US GAAP used to specify the lower of cost or market to value inventories. For fiscal years beginning after December 15, 2016, inventories measured using other than LIFO and retail inventory methods are measured at the lower of cost or net realizable value. This answer incorrectly uses some of the inventory measurement restrictions under US GAAP for LIFO. For inventories measured using LIFO and retail inventory methods, market value is defined as current replacement cost subject to upper and lower limits. Market value cannot exceed net realizable value.

Analysis of Inventories

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