If the Cost of an Item of Inventory Is $70

question 24

Multiple Choice

If the cost of an item of inventory is $70, the current replacement cost is $65, and the sales price is $85, the amount included in inventory according to the lower-of-cost-or-market method is:

• A) $65.
• B) $70.
• C) $85.
• D) $160.

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Definitions:

Federal Reserve

The Federal Reserve, often referred to as "the Fed," is the central banking system of the United States, responsible for managing the country's money supply and monetary policy.

Medium of Exchange

A mediating tool or mechanism designed to support the buying, selling, or exchanging of goods and services among participants.

Easily Divisible

Characteristic of a good or asset that can be divided into smaller parts without losing its value proportionately.

Backed by Gold

A financial system or currency that has its value directly linked to gold reserves, ensuring its stability and security.