Recording Inventory at Net Realizable Value Is Permitted, Even If

question 9

Multiple Choice

Recording inventory at net realizable value is permitted, even if it is above cost, when there are no significant costs of disposal involved and

• A) the ending inventory is determined by a physical inventory count.
• B) a normal profit is not anticipated.
• C) there is a controlled market with a quoted price applicable to all quantities.
• D) the internal revenue service is assured that the practice is not used only to distort reported net income.

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Definitions:

Aaron Beck

An influential American psychiatrist known for developing cognitive therapy, particularly for depression.

Cognitive Symptom

Manifestations of conditions that affect cognitive processes, often influencing learning, memory, perception, and problem-solving abilities.

Depression

A disorder of the psyche characterized by ongoing gloominess or a lack of zest for activities, which majorly disrupts normal life activities.

Artifact Theory

A theory that suggests differences observed in certain groups (e.g., in intelligence tests between cultures) are not due to actual differences in abilities but rather to the artifacts of the testing process itself.