Accounting for IGCSE & O level - Final Statements (Section 2 - No. 35)

Which of the following statements is/are true regarding inventory valuation methods?

FIFO assumes that the first items purchased are the first items sold.

LIFO is allowed under both US GAAP and IFRS.

AVCO uses a weighted average cost to value inventory.

Rising prices will cause FIFO to show higher net income than LIFO

FIFO (0), AVCO (2), and the impact of rising prices on FIFO vs LIFO (3) are all true. LIFO is not permitted under IFRS (1).