The Amount by Which Cost Exceeds Market Value Is Considered

question 46

True/False

The amount by which cost exceeds market value is considered a loss due to holding inventory and normally is charged to an account such as Loss on Write-Down of Inventory.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Assessed Valuation

The dollar value assigned to a property by a public tax assessor for the purposes of taxation.

Tax Rate

The percentage at which an individual or corporation is taxed.

Valuation Rate

A rate used to determine the current or projected worth of an asset or a company.