Under the Lower of Cost and Net Realizable Value Basis

question 41

Multiple Choice

Under the lower of cost and net realizable value basis, the adjusting entry to record a decline in net realizable value below cost includes a

• A)debit to the Inventory account.
• B)debit to the Cost of Goods Sold account.
• C)credit to the Cost of Goods Sold account.
• D)credit to the Sales account.

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A lack of clarity or precision in language or communication, often resulting in ambiguity or misunderstanding.

Ambiguity

The quality of being open to more than one interpretation; inexactness.

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A group of people who use the same system of language, symbols, or signs to communicate with one another.

Vague

Lacking clarity or preciseness in thought or expression; not clearly expressed or easily understood.