If the Market Value of Inventory Is Greater Than Its

question 23

Multiple Choice

If the market value of inventory is greater than its cost, then the application of the lower-of-cost-or-market rule would:

• A)decrease both the current ratio and net income.
• B)decrease the current ratio but not change net income.
• C)not change the current ratio but decrease net income.
• D)change neither the current ratio nor net income.

---

Definitions:

Retail Professional

An individual who works in the retail industry, specializing in areas such as sales, customer service, or product management.

Geofencing

A location-based service that triggers an action when a mobile device enters or exits a predefined geographical area.

Location-based Technology

Technologies that use the geographic location of a device or user to provide services or data relevant to that location.

Independent Grocers Alliance

A network of independently owned and operated supermarkets around the world, allowing them to compete collectively with larger chains while preserving their unique local offerings.