If ending inventory is understated for Year 1, then in Year 2:

Question 4 options:

A)	cost of goods sold will be understated and gross profit will be overstated.

B)	cost of goods sold and gross profit will both be overstated.

C)	cost of goods sold and gross profit will both be understated.

D)	cost of goods sold will be overstated and gross profit will be understated.

Which statement is FALSE?

Question 6 options:

A)	IFRS does not permit the use of LIFO.

B)	IFRS does permit the FIFO method.

C)	Many U.S. companies that currently use LIFO for their U.S. operations must use another method if they have operations in foreign countries.

D)	If LIFO is no longer allowed to be used in the United States, the tax burden on many companies will be lower.