For Each of the Accounting Treatments Below,indicate Whether It Is

Essay

For each of the accounting treatments below,indicate whether it is followed in GAAP,or IFRS,or both,by placing an "X" in the appropriate column(s).
$$\begin{array} { | l | l | l | } \hline { \text { Accounting Treatment } } & \text { GAAP } & \text { IFRS } \\\hline \text { 1. Record the purchase of assets at cost. } & & \\\hline \text { 2. Report assets at current value on the balance sheet. } & & \\\hline \text { 3. May use FIFO for inventory costing. } & & \\\hline \text { 4. May use LIFO for inventory costing. } & & \\\hline \text { 5. Contingent liabilities are accrued under specified circumstances. } & & \\\hline \text { 6. Some preferred stock is classified as a liability. } & & \\\hline \text { 7. Common stock is classified as stockholders' equity. } & & \\\hline \text { 8. Current assets precede noncurrent assets on the balance sheet. } & & \\\hline \text { 9. Equity precedes liabilities on the balance sheet. } & & \\\hline \text { 10. Dividends and interest received may be classified as either } & & \\\text { operating or investing activities. } & & \\\hline \begin{array} { l } \text { 11. May use either the direct method or the indirect method to } \\\text { prepare the statement of cash flows. }\end{array} & & \\\hline \begin{array} { l } \text { 12. Different parts of a piece of equipment may be depreciated over } \\\text { different periods of time (e.g., for a roller coaster, the engine may } \\\text { be depreciated over } 5 \text { years, the seats, over } 7 \text { years, and the track } \\\text { over } 10 \text { years). }\end{array} & & \\\hline\end{array}$$