An Inventory Loss from a Market Price Decline Occurred in the First

question 32

Multiple Choice

An inventory loss from a market price decline occurred in the first quarter. The loss was not expected to be restored in the fiscal year. However, in the third quarter the inventory had a market price recovery that exceeded the market decline that occurred in the first quarter. For interim reporting, the dollar amount of net inventory should:

• A) decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of the market price recovery.
• B) decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of the decrease in the first quarter.
• C) not be affected in the first quarter and increase in the third quarter by the amount of the market price recovery that exceeded the amount of the market price decline.
• D) not be affected in either the first quarter or the third quarter.

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Definitions:

International Audiences

Refers to diverse groups of people from different countries or cultures, considered in marketing, communication strategies, and media.

Organic Clothing

Apparel made from materials grown in compliance with organic agricultural standards, avoiding synthetic pesticides and fertilizers.

Hemp And Bamboo

Natural, sustainable resources used in a variety of products, including textiles, construction materials, and consumer goods, known for their environmental benefits.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including potential customers and competitors.