If the Market Value of Goods in Inventory Falls to $26,000

question 90

Multiple Choice

If the market value of goods in inventory falls to $26,000 below its cost, the company should:

• A) do nothing, because assets are reported at their original purchase price.
• B) credit inventory for $26,000.
• C) debit inventory for $26,000 and credit accrued liabilities for $26,000.
• D) use the weighted average cost method since that method provides a more accurate indicator of current value. The LCM rule requires a write-down of inventory when its replacement cost falls below its cost.

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Definitions:

Dominant Hormones

Hormones that have a major influence on certain body processes or parts, such as testosterone and estrogen, which respectively dominate in male and female bodies.

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond to the sex assigned at birth.

Gender-Role Stereotype

Preconceived notions and expectations about behaviors and characteristics deemed appropriate for males and females in a society.

Assigned Gender

The gender identity given to an individual at birth, typically based on physical anatomy.