Final answer:
The GAAP permits the use of LIFO but does not allow certain other practices, such as the revaluation of fixed assets to market value. GAAP is used in the United States and has its own distinct set of rules, which can contrast with other accounting standards like IFRS.
Step-by-step explanation:
The question asks about the accounting treatments allowed under the Generally Accepted Accounting Principles (GAAP), specifically noting that GAAP allows the use of the Last-In, First-Out (LIFO) inventory method but does not allow another specific treatment or method.
The GAAP is a set of rules and standards for accounting in the United States that governs how companies prepare and present their financial statements. It allows the use of the LIFO method, which assumes that the most recently produced or purchased items are the first to be sold. This can affect the company's net income and tax liability because the cost of goods sold (COGS) will reflect the cost of the most recent inventory, which may be more expensive if prices are rising. However, it's often noted that GAAP does not allow certain practices that may be permitted under other accounting standards, like the International Financial Reporting Standards (IFRS).
For example, GAAP does not allow the revaluation of fixed assets to market value, a practice that is allowed under IFRS. If the original question is asking what GAAP does not allow, the answer could be revaluation of assets, capitalization of development costs, or some other accounting treatment, depending on the context provided.